Resolute Forest Products Annual Report 2014

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FY2014 Annual Report · Resolute Forest Products

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2014
ANNUAL
REPORT

BUILDING A
SUCCESSFUL
TOMORROW

TABLE 0F
CONTENTS

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48
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52
54
55

Resolute at a Glance
2014 Highlights
Letter from the Chairman and
the President and Chief Executive Officer
Consolidated Earnings
Sustainability Highlights
Our Vision and Our Values
Business and Sustainability Strategy
Our Operations

BUSINESS SEGMENTS
Newsprint
Specialty Papers
Market Pulp
Wood Products

SUSTAINABILITY
Sustainability Performance
Fiber and Forestry
Lasting Collaboration with First Nations
Engaging in Dialogue
Energy and Climate Change
Mill Environmental Performance
Human Resources
Health and Safety
Community Involvement
Recognizing the Contributions of Our Employees

Board of Directors and Corporate Officers
Shareholder Information

The inside pages of this report are printed on ResoluteMax 84 Gloss
60 lb (89 g/m2) paper, part of Resolute’s Align™ portfolio of
environmentally conscious papers. This paper was manufactured at our
Catawba (South Carolina) mill. With its smaller environmental footprint,
ResoluteMax 84 Gloss is the perfect alternative to more costly
coated freesheet paper.

Among its environmental benefits, ResoluteMax 84 Gloss:
• uses 12% less wood fiber than the average coated freesheet

in North America;

• uses 25% less energy to produce than the average coated freesheet

in North America;

• has a carbon footprint that is 35% smaller over its life cycle than that of

the average coated freesheet in North America; and

• is available with SFI® and/or PEFC chain of custody certifications.

2014
ANNUAL
REPORT

BUILDING A
SUCCESSFUL
TOMORROW

Cover (from top right, clockwise):
Julie Lamontagne, Kénogami paper mill
Johnny Awashish, Opitciwan sawmill
Mariem Elsayed, Montréal office
Daniel Bolduc, Kénogami paper mill
Michel Belleau, Lac-Saint-Jean woodlands

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

BUILDING A SUCCESSFUL TOMORROW

At Resolute, our actions today build a sustainable and profitable
company for the future. With a network of some 40 pulp and
paper mills and wood products facilities in the United States,
Canada and South Korea, we have an operating platform
that has the scale, financial strength and cost advantage to
withstand market challenges. We are leveraging this financial
strength to seize opportunities to diversify, innovate and grow.
Fortunately, we have the flexibility to consider a range of
appropriate opportunities and the patience to make sure
the valuation is right. It is a strategic choice we make for
a stronger tomorrow.

Our continued success as a forest products leader is
inextricably linked to the engagement of our 7,700 employees
in providing the quality and service to meet the needs of
thousands of customers. Sustainability is front and center within
our corporate culture; it guides our approach to the way we
conduct business every day. Our ability to establish truly
collaborative relationships with communities, First Nations,
governments and other key stakeholders is critically important
as is our commitment to increase share value for investors.

In a constantly evolving market, we take charge of our future.
We make plans, take action and measure results. We say what
we do and do what we say. We move forward on the strength
of our successes and the challenges overcome. And every step
we take prepares the groundwork for shared prosperity.

RESOLUTE
AT A GLANCE

Total sales of

$4,258
million

Adjusted EBITDA1 of

$366
million

100%

of the forests
we manage
are third-party
certified

EBITDA1 of

$221
million

from market pulp
and wood products

72%

of energy is sourced
from renewable
sources

1. EBITDA and adjusted EBITDA, non-GAAP financial measures, are defined and reconciled on pages 11 and 12.

Note: All figures in this report are in U.S. dollars unless otherwise stated.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT3

DISTRIBUTION OF 2014 SALES BY % OF REVENUE

NEWSPRINT

SPECIALTY PAPERS

MARKET PULP

WOOD PRODUCTS

33% 30% 23% 14%

DISTRIBUTION OF 2014 SALES BY REGION

NEWSPRINT

SPECIALTY PAPERS

MARKET PULP

WOOD PRODUCTS

United States

Latin America

Canada

Asia

Europe

Other countries

46%

23%

12%

1 1 %

2015 TOTAL PRODUCTION CAPACITY2

60%

40%

90%

67%

10%

NEWSPRINT

SPECIALTY PAPERS

MARKET PULP

WOOD PRODUCTS

2.6 million
metric tons

1.5 million
metric tons

1.7 million
metric tons

2.8 billion
board feet3

2. Represents capacity for pulp and paper manufacturing facilities and wood products facilities we owned or operated as of December 31, 2014 (excluding facilities

and paper machines that were permanently closed as of December 31, 2014).
For more information, see Part 1, Item 1, “Business – Our Products” in our 2014 Annual Report on Form 10-K.

3. Our current supply of fiber, particularly in light of Quebec’s new forest tenure system, limits our operating capacity to about 2 billion board feet per year.

In 2014, we shipped 1.6 billion board feet of wood products.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT4

2014
HIGHLIGHTS

FEBRUARY

• Renewed U.S. collective

agreements

MARCH

• Added two more grades
to our Align™ brand of
eco-friendly papers

APRIL

MAY

• Our recycled pulp, the industry

• Renewed Canadian collective

• Announced a $105 million upgrade
at our Calhoun (Tennessee) mill to
produce more pulp, with a higher
quality at a lower cost

benchmark for quality and
cleanliness, cleared by the
U.S. Food and Drug Administration
(FDA) for use in food packaging

agreements

• Created social media platforms,
borealforestfacts.com (March),
The Resolute Blog (July) and
Boreal Forum (November),
to engage forest stakeholders

JUNE

• $10 million investment at our

Mokpo (South Korea) paper mill
to lower costs and increase
newsprint quality

• Launched R&D joint venture,

Performance BioFilaments Inc., to
develop commercial applications
for a new source of biomaterial
made from wood fiber

• Resolute ranked among Canada’s
Best 50 Corporate Citizens by
Corporate Knights

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT5

SEPTEMBER

OCTOBER

• Resolute’s president and

chief executive officer named to
Canada’s Clean50 list of leaders
in sustainable development and
clean capitalism in Canada

• Confirmed total GHG emission
reduction of 67.5% since 2000,
surpassing our commitment
two years ahead of schedule

NOVEMBER

• Named among Canada’s

Top 100 Corporate
R&D spenders
by Research Infosource

• Opening of Thunder Bay

wood pellet plant

DECEMBER

• Introduced Resolute Connect™,
a commodity offset paper made
from 100% kraft pulp

• In 2014, achieved an ambitious
and world-class Occupational
Safety and Health Administration
(OSHA) rate of 0.83, a 19%
improvement over 2013

• Reduced mill environmental
incidents by 19% over 2013

• Restarted Ignace sawmill,

in Ontario

• Received The New Economy

magazine’s global Clean Tech
award for best forestry and
paper solutions

• Over 1,000 new employees added
to the team, and looking to hire
another 4,000 or more by 2018

Jeremy Palmer, Thunder Bay wood pellet plant

Michèle Anctil, Mauricie woodlands operations

Theodore Van Tassel, Ignace sawmill

Dave Duchesne, Saint-Hilarion sawmill

the

neweconomy
AWARDS
2014

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTLETTER FROM THE CHAIRMAN AND
THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

Bradley P. Martin

Chairman

Richard Garneau

President and Chief Executive Officer

Resolute is a company that walks the talk. We clearly articulate
our plans, measure results against our goals and generate value
for our many stakeholders. We have a dedicated, loyal and skilled
workforce, and together, as a unified team, we deliver on our
commitments, address challenges and capitalize on opportunities.
With a capital structure that is intentionally flexible and conservative,
our financial strength gives us the ability to look at a range of
appropriate opportunities to diversify, innovate and grow, and
the patience to make sure the valuation is right.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
7

A SOLID
FINANCIAL
POSITION

Our market pulp and wood products
segments generated $221 million of
EBITDA in 2014, a 30% improvement
over 2013. Their strong performance
helped us to deliver three solid
consecutive quarters to finish the year
with $366 million of adjusted EBITDA,
even as the abnormally cold winter
of 2014 set us back by $55 million.

At year-end, we had cash and cash
equivalents of $337 million on hand and
total liquidity of $858 million, giving us
ample flexibility to execute our business
priorities.

Capital expenditures in 2014 were
$193 million. For 2015, we expect to
spend approximately $200 million,
including $130 million in value-creating
projects such as our capital projects
to grow our wood products and pulp
businesses.

After rising interest rates helped to
reduce the net pension and other
postretirement benefit (OPEB)
liability on our balance sheet by nearly
$700 million in 2013, interest rates
shifted downward in 2014, finishing the
year even below 2012 levels. But thanks
to strong asset returns, the favorable
currency impact and amendments to
our OPEB plans, our balance sheet net
pension obligation and OPEB liabilities

increased by $330 million to $1.6 billion
in 2014, compared to $2.0 billion
in 2012. This increase also includes
the significant impact of longer life
expectancy assumptions in both
Canada and the United States.

Also in 2014, we renewed important
collective agreements in Canada
covering 2,000 unionized workers,
as well as U.S. labor agreements at
four pulp and paper mills covering
1,500 employees. These mutually
beneficial agreements, which cover
over 70% of our pulp and paper
production capacity, reinforce our
position as a competitive employer
and a financially strong and reliable
supplier for our customers.

INVESTING
IN OUR
OPERATIONS

Resolute is a lower cost industry leader,
committed to maximizing shareholder
value and earnings power. We believe
in investing in our operations to
increase profitability and long-term
competitiveness.

We apply our principles of operational
excellence to our synergistic and
diversified asset base, one that has
evolved with time, as we execute our
gradual retreat from certain paper
grades toward more sustainable
long-term businesses. Put simply,

our paper segments generate
significant cash flow, which we use to
grow our business for the long term.
This synergistic and complementary
asset base also offers the fiber
management advantage of integration
and earnings diversification.

We announced significant investments,
among them a $105 million upgrade
to our Calhoun, Tennessee, pulp and
paper mill, including the installation of
a modern continuous pulp digester and
other wood chip processing equipment.
We are making excellent progress, and
we expect to start the ramp-up process
in the fourth quarter of 2015. At capacity,
we will have an additional 100,000
metric tons of market pulp available on
an annualized basis. This world-class
equipment will help to significantly
lower the mill’s overall costs and improve
the quality of its products. Considering
the support we have received from
the state of Tennessee, McMinn County
and the Tennessee Valley Authority,
and especially the benefits we expect
the project to yield, the anticipated
return on this project is very attractive.

We also invested C$90 million
in Northwestern Ontario for the
construction of a new sawmill in
Atikokan, the upgrade and restart of an
idled sawmill in Ignace, the production
capacity increase at our Thunder Bay
sawmill, as well as the addition of a
wood pellet plant at the Thunder Bay
site. The Thunder Bay sawmill,
a collaboration with the Fort William
First Nation, is the largest and most
modern in Eastern Canada.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
LETTER FROM THE CHAIRMAN AND
THE PRESIDENT AND CHIEF EXECUTIVE OFFICER (CONTINUED)

The pellet plant will have the capacity
to produce up to 50,000 metric tons
of wood pellets annually from residual
sawdust. The plant has a ten-year
agreement to supply the local power
utility with 45,000 metric tons of
pellets annually.

The Atikokan and Ignace sawmills are
expected to boost our annual operating
capacity by about 260 million board feet.
These two sawmills and other ongoing
projects will help us grow our annualized
sawmill operating capacity to around
1.9 billion board feet, a 30% increase
over 2013. These investments will also
help create 200 sawmill jobs, another
200 woodlands jobs, and additional
significant indirect employment for
the region. In conjunction with the
sawmill investments, Resolute signed
a Memorandum of Agreement with six
First Nations, which sets out a framework
for negotiating business agreements.
To date, this agreement has resulted in
C$100 million in new business for our
First Nations partners.

INNOVATING
FOR THE
FUTURE

Looking to the technologies of
tomorrow, we launched Performance
BioFilaments Inc., a research and
development biomaterial joint venture
with Mercer International Inc., to
develop commercial applications for
cellulose filaments, a new source of
biomaterial made from wood fiber.

This versatile material can be used to
add strength, stability, flexibility and
longevity to concrete, composites and
coatings for use in the aviation, marine,
aerospace, electronics manufacturing
and construction sectors.

We are also investing in a world-class
greenhouse. In partnership with the town
of Saint-Félicien, local entrepreneurs
and a new entity, Serres Toundra, we will
build the largest greenhouse complex in
Quebec. Proximity to our kraft pulp mill
provides synergies that will benefit
all parties, and we expect this venture
will create up to 400 jobs in the
region by 2018.

WORLD-CLASS
SAFETY
PERFORMANCE

At Resolute, safety is an absolute
priority and one in which no compromise
is acceptable. It is a core value,
linked to every part of our business.
Zero incidents is our ultimate goal
and the foundation of operational
excellence.

While 2013 had been the best safety
year in the company’s history, we
surpassed it in 2014, recording a
world-class Occupational Safety and
Health Administration (OSHA) incident
rate of 0.83. This accomplishment
reflects our employees’ focus,
dedication and vigilance in striving
for an injury-free workplace.

DIFFICULT
DECISIONS
TO ENSURE
ONGOING
SUCCESS

2014 was also a year of difficult
decisions. We closed our Laurentide mill
in Shawinigan, Quebec, which employed
275 people and had a production
capacity of 191,000 metric tons of
specialty papers. We also permanently
closed the previously idled pulp and
paper mill in Fort Frances, Ontario.
Late in the fourth quarter, we announced
a further removal of 465,000 metric
tons of newsprint capacity, with the
closure of our Iroquois Falls, Ontario,
mill, which affected 180 employees,
and the closure of two paper machines,
one at Baie-Comeau, Quebec, in
December and one at Clermont,
Quebec, in February of 2015, which
affected an additional 120 employees.

The cost positions of these operations
as well as ongoing market challenges,
including the global weakness in
newsprint, the high cost of fiber in
Quebec, and higher transportation
and fuel costs, made them vulnerable.
However, another issue was at play
that cannot be ignored: the ill-founded
attacks of environmental activist
groups that misrepresent the company’s
forest management practices. These
campaigns have been proven to be
based on misinformation and falsehoods.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
9

The fact is the Canadian boreal
ecosystem from which our Canadian
facilities source the bulk of their wood
fiber requirements is one of the world’s
most robust, and Ontario and Quebec’s
forest management regimes and
regulations are among the most
stringent in the world.

BALANCING
ENVIRONMENTAL,
SOCIAL AND
ECONOMIC
PRIORITIES

As in previous years, we continue to
place importance on our sustainability
practices and on the disclosure of our
sustainability performance. We have
deliberately developed our business
and sustainability strategies to be
interdependent, and that is why since
2012, we have been combining our
financial and sustainability results
in our annual report.

In 2014, we surpassed our greenhouse
gas (GHG) emission reduction target
two years ahead of schedule, reducing
emissions by 67.5% over our year 2000
baseline. As a member of the World
Wildlife Fund® (WWF®) Climate Savers
Program, Resolute made among the
most ambitious commitments in the
industry, on a global basis, to reduce
our carbon footprint.

Over 50% of the improvement came
from reductions in energy consumption,
fuel switching and fuel mix, including
the complete elimination of on-site coal
use. Today, about 70% of Resolute’s total
energy needs come from renewable
sources.

We produce a significant portion of
our energy needs internally, using
hydroelectric facilities that we own
and cogeneration facilities fueled by
biomass by-products. We estimate that
these sources provide approximately
$55-60 million of annualized cost savings
when compared to buying electricity
from the grid. We also have four
cogeneration facilities in Canada that
sell substantial amounts of electricity
to third parties. These facilities helped
improve EBITDA by $43 million in 2014.

We work to minimize our consumption
of resources and the generation
of waste, air emissions and water
discharge by going beyond minimum
legal requirements. We also focus on
continuous improvement and have
environmental management systems
(EMS) in place at all our operating
sites – the majority certified to
stringent ISO 14001 standards.

We are pleased to report that we
reduced mill environmental incidents
by 19% in 2014, surpassing our 10%
reduction target over 2013. We continue
to work toward zero incidents and have
raised the bar yet again for 2015 by
setting a further 9% reduction target.

When it comes to fiber and forestry,
100% of the woodlands Resolute
manages are independently certified
to at least one of three internationally
recognized sustainable forest
management standards: Forest
Stewardship Council® (FSC®),
Sustainable Forestry Initiative® (SFI®)
and CSA Group (CSA). In addition,
every one of our North American
manufacturing facilities has fiber-
tracking systems, all of which are
third-party certified to one or more of
three internationally recognized chain of
custody (CoC) standards, namely FSC,
SFI and Programme for the Endorsement
of Forest Certification (PEFC).

And on the subject of fiber, this past year
we expanded our eco-conscious Align™
brand of papers by adding two more
grades: Hybrid and Alternative. Our
Align papers are made with up to 50%
less wood fiber compared to freesheet
paper, and have an environmental
footprint 35% to 85% smaller than that
of the average freesheet grade.

Resolute’s long-term competitiveness
is strongly linked to attracting,
developing and retaining our workforce
of the future. In 2014, we hired
1,089 employees and are on target to
hire 4,250 new employees over the
2014-2018 period. We also launched
an integrated leadership system
designed to increase organizational
capabilities. Over the next few years,
many of our employees will take their
well-deserved retirement, and we are
committed to building a workplace
where our employees will learn, grow
and contribute.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
LETTER FROM THE CHAIRMAN AND
THE PRESIDENT AND CHIEF EXECUTIVE OFFICER (CONTINUED)

Also this past year, in addition to
developing information sources such as
borealforestfacts.com and The Resolute
Blog, we continued the rollout of the
Forum boréal and Boreal Forum social
media platforms. A series of town hall
meetings complemented these online
forums, which encourage fact-based
discussions about sustainable forestry
practices and help ensure that individual
and community voices are heard,
especially with respect to the socio-
economic importance of forestry to
northern communities.

We are delighted that others are
noticing our genuine and substantive
sustainability accomplishments.
This past year, Resolute was ranked
among the “Best 50 Corporate
Citizens” in Canada by Corporate
Knights; Richard Garneau was named
to Canada’s elite Clean50, recognizing
leaders who have made the greatest
contribution to sustainability and clean
capitalism; and the company received
The New Economy magazine’s global
Clean Tech award for best forestry
and paper solutions.

RESOLUTE’S 2015
BUSINESS PRIORITIES

Committed to increasing earnings
power and creating value for
shareholders in the long term

Increase efficiencies,
set manufacturing cost targets
and benchmark performance
at all operations

Manage production and
inventory levels taking into
account market conditions

Pursue sales strategy
to produce only what our
customers order

Identify and support
disciplined capital investments
at our most competitive facilities

Pursue opportunistic growth
to complement our product mix
or improve competitiveness
of existing assets

A LOOK
AHEAD

2015 holds both challenges and
opportunities for Resolute. We remain
committed to maximizing shareholder
value and earnings power by stressing
our guiding principles of operational
excellence in everything we do, pushing
to optimize our asset base in order to
maximize the utilization of our most
cost-effective mills, and streamlining
production to adapt to changing market
dynamics. We will continue to apply our
principles of operational excellence to
our synergistic and diversified asset
base, one that has evolved with time,
as we execute our gradual retreat from
certain paper grades toward more
sustainable long-term businesses.
And we will continue to make
disciplined capital management a
priority, maintaining a flexible and
conservative capital structure that gives
us the ability to consider a range of
suitable opportunities, and the patience
to make sure the valuation is right.

We have our employees to thank for
the important progress we have made
toward building a successful tomorrow.
Once again, they have shown that we
work as one team with one vision,
where profitability and sustainability
drive our future.

Bradley P. Martin
Chairman

Richard Garneau
President and Chief Executive Officer

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
CONSOLIDATED EARNINGS
SELECTED ANNUAL FINANCIAL INFORMATION

Years ended December 31,
(in millions, except per share amounts and percentages)

2014

2013

2012

Sales

Operating income (loss) per segment

Newsprint

Specialty papers

Market pulp

Wood products

Corporate / other

Total

Net (loss) income

Net (loss) income per common share

Basic

Diluted

Cash and cash equivalents

Total assets

Adjusted EBITDA5

Adjusted EBITDA margin5

ROE, adjusted for special items6

$ 4,258

$ 4,461

$ 4,503

(17)

(315)

(174)

(277)

$ (2.93)

(2.93)

$ 337

4,921

$ 366

8.6%

1.4%

(160)

(2)

(639) 4

$ (6.75)

(6.75)

$ 322

5,385

$ 377

8.5%

2.8%

(43)

(193)

(28)

$ 0.01

0.01

$ 263

6,333

$ 393

8.7%

2.6%

Includes a $604 million non-recurring, non-cash income tax charge, taken largely in the third quarter of 2013, to reduce the value of deferred income tax assets on our
balance sheet. For more information, see our 2014 Annual Report on Form 10-K.

5. Earnings before interest expense, income taxes, and depreciation and amortization, or “EBITDA”, adjusted EBITDA and adjusted EBITDA margin are not financial

measures recognized under GAAP. EBITDA is calculated as net income (loss) including noncontrolling interests from the consolidated statements of operations, adjusted
for interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA means EBITDA, excluding special items, such as foreign exchange translation
gains and losses, severance costs, closure costs, impairment and other related charges, inventory write-downs related to closures, start-up costs, gains and losses on
disposition of assets, net loss on extinguishment of debt, write-down of equity method investment, transaction costs and other charges or credits. Adjusted EBITDA
margin is adjusted EBITDA expressed as a percentage of sales. We believe that using measures such as EBITDA, adjusted EBITDA and adjusted EBITDA margin is useful
because they are consistent with the indicators management uses internally to measure the company’s performance, and it allows the reader to more easily compare
our ongoing operations and financial performance from period to period. EBITDA, adjusted EBITDA and adjusted EBITDA margin are internal measures and, therefore,
may not be comparable to those of other companies.

6. Return on equity, or “ROE”, is a non-GAAP financial measure, calculated by dividing net income (loss), excluding the special items identified on page 12, by adjusted

shareholders’ equity. ROE is a measure of profitability that shows how much profit the company generated as a percentage of shareholder money invested.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

CONSOLIDATED EARNINGS
Selected Annual Financial Information (continued)

Years ended December 31,
(in millions)

2014

2013

2012

Net loss including noncontrolling interests

$ (274)

$ (639)

(33)

Interest expense

Income tax (benefit) provision

Depreciation and amortization

EBITDA

Foreign exchange translation loss (gain)

Severance costs

Closure costs, impairment and other related charges

Inventory write-downs related to closures

Start-up costs

Net gain on disposition of assets

Write-down of equity method investment

Net loss on extinguishment of debt

Transaction costs

Other income, net

Adjusted EBITDA

(in millions, except ROE)

GAAP, as reported

Adjustments for special items:

Foreign exchange translation loss

Closure costs, impairment and other related charges

Inventory write-downs related to closures

Start-up costs

Net gain on disposition of assets

Write-down of equity method investment

Other income, net

Income tax effect of special items

Cumulative past-year adjustments for special items

(30)

243

524

243

(39)

233

(14)

179

$ 227

—

278

(2)

—

(10)

—

(2)

—

(21)

(17)

185

(35)

—

(5)

$ 366

$ 377

$ 393

December 31, 2014

Net (loss)
income

Shareholders’
equity

ROE (%)

$ (277)

$ 2,106

(13.2)%

278

(2)

(10)

(57)

—

(2)

(10)

(57)

956

GAAP, as adjusted for special items

$ 46

$ 3,385

1.4 %

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

December 31, 2013

Net (loss)
income

Shareholders’
equity

ROE (%)

(639)

$ 2,827

(22.6)%

(2)

(21)

604

(56)

—

(2)

(21)

604

(56)

210

(in millions, except ROE)

GAAP, as reported

Adjustments for special items:

Foreign exchange translation loss

Closure costs, impairment and other related charges

Inventory write-downs related to closures

Start-up costs

Net gain on disposition of assets

Net loss on extinguishment of debt

Transaction costs

Other income, net

U.S. deferred income tax asset valuation allowance

Income tax effect of special items

Cumulative past-year adjustments for special items

GAAP, as adjusted for special items

107

$ 3,783

2.8 %

(in millions, except ROE)

GAAP, as reported

Adjustments for special items:

Foreign exchange translation gain

Severance costs

Closure costs, impairment and other related charges

Inventory write-downs related to closures

Start-up costs

Net gain on disposition of assets

Transaction costs

Other income, net

Reorganization-related and other tax adjustments

Income tax effect of special items

Noncontrolling interests in special items

Cumulative past-year adjustments

GAAP, as adjusted for special items

December 31, 2012

Net income

Shareholders’
equity

ROE (%)

$ 3,102

— %

(17)

185

(35)

(5)

(13)

(33)

(35)

—

185

(35)

(5)

(13)

(33)

(35)

125

$ 3,312

2.6 %

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

SUSTAINABILITY
HIGHLIGHTS

ENVIRONMENTAL HIGHLIGHTS7

20148

2013

20129

Total environmental incidents

Fuel energy used, TJ

Electricity used:

Total purchased, GWh

Net purchased12, GWh

Self-generated or owned, GWh

Renewable energy, % of total energy (including purchased electricity)
Greenhouse gas (GHG) emissions, thousands of mt CO2e13
Water used14, millions of m3

Water use intensity (m3/mt of saleable pulp or paper produced)

Facilities certified to ISO 14001 EMS15, %
Biochemical oxygen demand (BOD5), mt
Total suspended solids (TSS), mt

Sustainable forest management (SFM) certification16, %

Mills with chain of custody certification in North America17, %

SOCIAL HIGHLIGHTS

Employees18

Occupational Safety and Health Administration (OSHA)
incident rate per 100 employees19

OSHA severity rate per 200,000 man hours worked20

Lost time incident cases

Recordable injuries21

Employee turnover, %

Employee wages and benefits, $ millions

Donations, $ millions

100,217

101,219 11

3810

81,376

11,534

10,584

2,864

3,545

332

56.3

7,858

9,496

100

12,032

11,037

2,810

3,848

386

65.5

7,132

9,457

100

11,613

11,538

2,293

3,845

354

64.2

6,698

8,646

100

2014

2013

2012

7,700

8,400

0.83

11.6

666

1.02

25.9

11.7

734

0.9

9,100

1.13

34.01

107

12.5

775

1.2

ECONOMIC HIGHLIGHTS

2014

2013

2012

Actual external sales of electricity produced from
cogeneration facilities, GWh/year

Sales of AlignTM papers, % of total specialty paper sales

Indirect employees23

950
19.9 22

801

152

25,025

27,300

29,575

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
15

7. Environmental data is for pulp and paper mills only, except for environmental incidents, which also include sawmills.

8. The information is preliminary and subject to change; data will be confirmed on our website this summer.

9. With the exception of environmental incidents, data does not include performance in respect of the three former Fibrek mills: Saint-Félicien (Quebec),

Fairmont (West Virginia) and Menominee (Michigan), acquired in mid-August 2012.

10. Environmental incident reporting has changed over time, moving from a system divided by classes to a total incident count. Our 2012 data is based on information

collected through the old system, which only considered certain classes of incidents.

11. The increase in fuel energy consumption between 2012 and 2013 is mostly attributable to the addition of the three former Fibrek mills acquired in mid-August 2012,

the restart of operations at our Dolbeau (Quebec) mill in October 2012 and that of our Gatineau (Quebec) mill in May 2013, and the launch of our Thunder Bay (Ontario)
cogeneration facility in March 2013.

12. Represents purchased electricity, minus actual external sales of electricity produced from cogeneration facilities.

13. GHG emission figures include scope 1 GHG emissions (combustion, landfill, process and fugitive emissions) as well as scope 2 GHG emissions
(emissions from consumption of purchased electricity and steam) that physically occur at the facility where electricity or steam is generated.

14. Resolute returns more than 95% of the water it withdraws. The balance remains within products or evaporates during the manufacturing process.

15. At the end of 2014, 21 out of 22 pulp and paper mills, 16 out of 18 wood products facilities and 8 out of 9 woodlands operations had an ISO 14001-certified EMS.

16. All of the forests we manage are certified to at least to one of three internationally recognized sustainable forest management (SFM) certification standards:

Forest Stewardship Council® (FSC®), Sustainable Forestry Initiative® (SFI®) or CSA Group (CSA).

17. Resolute has instituted fiber-tracking systems at all of our facilities, and all tracking systems are third-party certified according to one or more of three internationally

recognized chain of custody (CoC) standards: FSC, SFI or Programme for the Endorsement of Forest Certification (PEFC).

18. Excluding the unconsolidated entities in which we have non-controlling interests.

19. Health and safety statistics are calculated for all employees, with the exception of near-miss reporting, which is only applied to employees at operating sites.

20. The severity rate is calculated by adding the number of workdays lost to the number of restricted workdays due to injury, multiplied by 200,000 hours worked,

divided by total number of hours worked.

21. Recordable injuries do not include minor, first-aid level incidents.

22. In 2014, two new grades were added to the Align family of products (Hybrid and Alternative) as the facility where they are produced switched to lower emission fuels

to improve environmental performance.

23. Research by the Economic Policy Institute indicates that for every 100 jobs in the paper industry, 325 additional jobs are supported in supplier industries and

in local communities due to the re-spending of wages.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT16

OUR VISION

At Resolute Forest Products, we are one team with one vision
where profitability and sustainability drive our future.

OUR VALUES

WORK SAFELY

ENSURE SUSTAINABILITY

We always put the safety of our people
first. Creating an injury-free workplace
is everyone’s business. We maintain
world-class standards and continuously
measure and improve our safety efforts
and results.

We make decisions with tomorrow
in mind. We know that our long-term
profitability depends on preserving the
natural resources in our care and being a
responsible partner in the communities
where we live and work.

BE ACCOUNTABLE

SUCCEED TOGETHER

We are accountable for our performance.
The future of our company is in our hands.
By empowering people, acting with
integrity, setting goals and measuring
progress, we deliver first-class products
and services to customers and create
value for shareholders.

We win together. Teamwork starts with
a winning attitude and a true desire to
support each other. We welcome ideas,
communicate frequently and share
best practices.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
17

BUSINESS AND SUSTAINABILITY STRATEGY

At Resolute, we report our business and sustainability results together.
Our sustainability strategy has been purposely developed to align
our efforts in environmental stewardship and social responsibility
with our business strategy and objectives. This approach underpins our vision
that profitability and sustainability drive our future.

Our business strategy includes a gradual retreat from certain paper grades and the use of our strong
financial position to diversify and grow. This strategy focuses on three core themes:

We strive for operational
excellence by improving our
performance and our margins.

We use a disciplined approach
to capital spending by building
on our position as a lower cost
producer, continuously looking
for ways to reduce overhead.

We take an opportunistic
approach to strategic initiatives,
pursuing only those that reduce
our cost position, improve our
product diversification, provide
synergies or allow us to expand
into future growth markets.

Our sustainability strategy is based on a balanced approach to environmental, social and economic
performance designed to enhance our competitive position. And like our business strategy, it has
three primary areas of focus:

We reinforce our environmental
credentials by taking
appropriate steps to manage
our environmental footprint.

We strive to attract and retain
the best employees by creating
the right work environment in
order to position Resolute as
a competitive employer.

We work and live in dozens of
communities that depend on
the forest for their economic
and social viability. For Resolute,
building solid community
relations is essential to our
long-term success, and to
the regional prosperity of
these communities.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTOUR
OPERATIONS

QUEBEC, CANADA

Corporate office

Customer service

Pulp/paper

Wood products

Energy

Comtois

Senneterre

Amos

Opitciwan

Saint-Thomas

Girardville

Normandin

La Doré

Saint-Félicien

Saint-Prime

Baie-Comeau

Outardes

Dolbeau

Mistassini

Produits Forestiers Petit-Paris

Alma

Kénogami

Clermont

Saint-Hilarion

Larouche

Hydro-Saguenay

Château-Richer

Produits Forestiers Mauricie

Ponderay, WA

Maniwaki

Montréal

Gatineau

ONTARIO, CANADA

EASTERN UNITED STATES

Ignace

Atikokan

Thunder Bay

Menominee, MI

Thorold

Fairmont, WV

SOUTH KOREA

WESTERN UNITED STATES

Calhoun, TN

Ponderay, WA

Grenada, MS

Coosa Pines, AL

Catawba, SC

Augusta, GA

Mokpo

Menominee, MI

Fairmont, WV

Calhoun, TN

Catawba, SC

Grenada, MS

Coosa Pines, AL

Augusta, GA

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT19

BUSINESS SEGMENTS

NEWSPRINT
SPECIALTY PAPERS
MARKET PULP
WOOD PRODUCTS

BUSINESS SEGMENTS

BEYOND
THE FRONT PAGE

WE HAVE THE CAPACITY
TO MEET YOUR NEEDS

Resolute is a leading global producer
of top-quality newsprint. With mills
strategically located to serve major
markets throughout North America
and abroad, we supply customers
in some 80 countries.

We produce newsprint at 10 facilities
in North America and one facility in
South Korea. With total capacity of
approximately 2.6 million metric tons,
or 9% of worldwide capacity, we are
the largest producer of newsprint in
the world. We are also the largest
North American producer of newsprint,
with North American capacity of
2.4 million metric tons, or approximately
41% of total North American capacity.

We sell newsprint to newspaper
publishers all over the world and also to
commercial printers in North America
for uses such as inserts and flyers.

In 2014, shipments to North American
markets represented 60% of total
newsprint shipments.

NEWSPRINT

Every day our newsprint routinely makes the front pages of some of the world’s
top newspapers. But there’s more to the story. Advertising brochures, circulars, inserts
and directories. We provide companies and their customers with a way to connect.

INVESTING IN THE BROADER
ASIAN NEWSPRINT MARKET

In June 2014, we announced a
$10 million investment at our Mokpo,
South Korea, paper mill to upgrade the
facility’s newsprint machine. This is a
commitment not only to the Mokpo mill
and the South Korean marketplace
but also to the broader Asian market.
Built in 1995, Resolute’s Mokpo mill is
the newest paper mill in South Korea
and has an annual production capacity
of 200,000 metric tons. The upgrades
and improvements will enhance the
quality of the paper and help better
position the mill to compete.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT21

Ken McIlwain, Thunder Bay pulp and paper mill

● ON SUSTAINABILITY

Our recycled newsprint mills in Thorold
(Ontario) and Mokpo (South Korea) are
located near urban areas that have more
readily accessible supplies of recovered
paper. Our mills that are located in
more remote areas use wood chips from
nearby sawmills to produce newsprint,
making efficient use of this readily
available local by-product of stud and
dimension lumber production.

● MARKET TRENDS

TOTAL N.A. NEWSPRINT DEMAND
(millions of metric tons)

2014 WORLD NEWSPRINT CHANGE
IN DEMAND BY GEOGRAPHIC MARKET
(% change over 2013)

2014 NEWSPRINT DEMAND DISTRIBUTION
(millions of metric tons)

5.8

5.4

5.0

4.9

4.5

4.1

a
c
i
r
e
m
A
n
i
t
a
L

a
c
i
r
e
m
A
h
t
r
o
N

d
l
r
o
W

a
i
s
A

e
p
o
r
u
E
n
r
e
t
s
a
E

e
p
o
r
u
E
n
r
e
t
s
e
W

2009

2010

2011

2012 2013

2014

(6.0%)

(7.4%)

(7.6%)

(9.2%)

(9.0%)

Source: Pulp and Paper Products Council (PPPC)

● Asia
47%
● Western Europe
23%
● North America
16%
● Latin America
5%
● Eastern Europe
5%
● Other
4%
Total world demand 26.0 100%

12 .1
6.1
4.1
1.4
1.3
1.0

BUSINESS SEGMENTS

MAKING
AN IMPRESSION

Good printing will always draw attention
and we have the paper to prove it.
Our specialty coated and uncoated
paper grades are used to make
magazines, catalogs, direct mail, inserts,
instruction manuals, books, directories,
maps, advertising inserts and flyers.

We produce specialty papers at
five facilities in North America.
Our specialty papers segment is
composed of uncoated mechanical
papers, including supercalendered,
super-bright, high-bright, bulky book
and directory papers, as well as
coated mechanical papers.

With total capacity of approximately
1.1 million metric tons, or approximately
27% of total North American capacity,
we are the largest producer of
uncoated mechanical papers in
North America, and the third largest in
the world. Also, with 435,000 metric
tons of capacity, or approximately 14%
of total North American capacity, we are
North America’s third largest producer
of coated mechanical papers. We sell
specialty papers to major commercial
printers, direct mailers, publishers,
catalogers and retailers, mostly in
North America.

SPECIALTY PAPERS

From the bestseller you just can’t put down to the magazines
on your coffee table and the flyers in your mailbox,
our specialty papers deliver exceptional printability.

● MARKET TRENDS

TOTAL N.A. UNCOATED
MECHANICAL DEMAND
(millions of short tons)

5.5

5.6

5.1

4.3

4.4

4.2

2009

2010

2011

2012 2013

2014

Source: PPPC

2014 TOTAL CHANGE IN N.A. UNCOATED
MECHANICAL DEMAND, BY GRADE
(% change over 2013)

2014 N.A. UNCOATED MECHANICAL DEMAND
DISTRIBUTION, BY GRADE
(thousands of short tons)

SC-B/
SNC+
3.5%

(4.6%)
Total

(3.9%)
STD

(5.2%)
SC-A/
A+

(19.5%)
LW

● STD
● SC-A/A+
● SC-B/SNC+
● LW

1,830
1,360
721
321

43%
32%
17%
8%

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT23
23

From left to right: Marco Pelletier,
Rosaire Simard and Robert Simard,
Kénogami paper mill

● ON SUSTAINABILITY

Align™ paper grades are made with
up to 50% less wood fiber compared
to freesheet paper, and have an
environmental footprint 35% to 85%
smaller than that of the average
freesheet grade. In addition, by
delivering higher opacity and bulk at
a lower basis weight than traditional
freesheet, Align helps reduce paper,
postage and transportation costs.

N.A. COATED MECHANICAL
PAPER DEMAND
(millions of short tons)

N.A. COATED MECHANICAL
PAPER IMPORTS
(thousands of short tons)

4.4

4.5

4.1

4.0

3.7

3.5

719

506

439

496

444

316

2009

2010

2011

2012

2013

2014

2009

2010

2011

2012

2013

2014

Source: PPPC

BUSINESS SEGMENTS
SPECIALTY PAPERS (CONTINUED)

FROM HIGH-IMPACT ADVERTISING
TO BEST-SELLING BOOKS

Many of North America’s top retailers
rely on Resolute’s coated and
supercalendered papers to help ensure
that their flyers, inserts and catalogs
make a great impression. Our Catawba
mill, in South Carolina, produces an
impressive line of coated mechanical
papers in a variety of brightnesses
and finishes for catalogs, magazines
and retail inserts.

We also offer the widest range of
book papers of any North American
manufacturer. With different
calipers, shades, basis weights and
brightnesses, our book papers provide
us with a competitive advantage in
the marketplace. From coloring
books, mass market paperbacks and
tradebooks to educational workbooks
and hardcover books, we have a
paper product to fit just about any
book publishing need.

A NEW PAPER GRADE
THAT CONNECTS QUALITY
WITH COST EFFECTIVENESS

We call it the Connect Effect.
That’s when our customers receive
fast delivery of Connect™, our new
commodity offset grade, at a price their
bottom line appreciates. Produced
in Tennessee at our state-of-the-art
Calhoun operation, Resolute Connect is
made from 100% kraft pulp and exhibits
excellent runnability and printability
characteristics. With high opacity, this
paper is perfect for many commercial
printing end uses.

GROWING OUR ALIGN
ECO-FRIENDLY BRAND

In 2014, we continued to expand
our Align brand of environmentally
responsible and budget-friendly papers
by adding two more super-brite grades,
Hybrid and Alternative, to our existing
offerings of Ecopaque, Equal Offset and
ResoluteMax. The new Hybrid grades
are used for commercial printing such
as comics, direct mail, directories,
envelopes, inserts and manuals.
Alternative Offset papers are ideal for
a variety of print applications, including
book publishing, financial printing,
annual reports and direct mail.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

Steeve Audet, Kénogami paper mill

BUSINESS SEGMENTS

A MAJOR PULP
PRODUCER

We are one of the few producers
capable of supplying a wide variety
of different grades of market pulp.
And each of these has unique
properties that make them ideal
choices for particular applications.

We produce market pulp at seven
facilities in North America, with a total
capacity of approximately 1.7 million
metric tons – or approximately 11% of
total North American capacity – making
us the third largest pulp producer in
North America. Approximately 80%
of our virgin pulp capacity is softwood-
based: northern bleached softwood
kraft pulp (NBSK), southern bleached
softwood kraft pulp (SBSK) and
fluff pulp.

In 2014, Resolute launched a
$105-million project to upgrade
the Calhoun (Tennessee) pulp mill.
A new continuous digester will enable
the mill to produce an additional
100,000 metric tons of market pulp
each year. This world-class equipment
will also significantly lower the mill’s
overall costs and improve the quality
of its pulp and paper products.

We are also the largest producer of
recycled bleached kraft pulp (RBK) and
a competitive producer of northern
bleached hardwood kraft pulp (NBHK)
and southern bleached hardwood kraft
pulp (SBHK). Wood pulp is the most
commonly used material to make paper.
Pulp not converted into paper is sold
as market pulp, which is used to make a
range of consumer products, including
tissue, packaging, specialty paper
products, diapers and other absorbent
products. Approximately 26% of our
2014 market pulp shipments were
exported outside of North America,
including significant exports to Europe,
Asia and Latin America.

MARKET PULP

Our pulp, a renewable and biodegradable material, is a key ingredient
in making products we use every day. You’ll find it in everything from
tissues to paper towels, coffee filters, disposable diapers and other
absorbent products, as well as printing and writing papers.

PULP FOR A
VARIETY OF NEEDS

We offer a complete spectrum of
chemical pulp products with high-
quality performance characteristics
that meet diverse customer needs.

Softwood kraft pulp: Our softwood
kraft pulp has structural properties
that provide exceptional strength.
Minimal energy is needed to refine
the pulp, which is favored for use in
manufacturing tissues and paper towels,
as well as printing and writing papers.

Hardwood kraft pulp: Key features
of hardwood pulp include excellent
cleanliness, formation and surface
properties, complemented by good
bulk and opacity. These characteristics
are ideal for tissue and paper towels,
as well as printing and writing papers.

Recycled bleached kraft pulp: Our
fully dried recycled bleached kraft pulp
can be manufactured with different
brightness levels and is used in tissues
and paper towels, printing and writing
papers, as well as in food packaging
applications.

Fluff pulp: Produced in the southern
United States from loblolly pine, our
fluff pulp offers excellent absorbency
and wicking features that make it
ideal for producing diapers and other
absorbent products.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT27

Bobby Willis, Sr., Catawba pulp and paper mill

● ON SUSTAINABILITY

In 2014, the U.S. Food and Drug
Administration (FDA) confirmed that our
RBK-LF pulp (recycled bleached kraft
– low fluorescence) produced at our mills
in Menominee (Michigan) and Fairmont
(West Virginia) is suitable for use in coated
paper and paperboard grades intended
for use in contact with food. Now we can
serve a new market with even more options
when it comes to using recycled fiber.

● MARKET TRENDS

2014 WORLD CHEMICAL PULP DEMAND
(% change over 2013)

8.9%

2014 WORLD CHEMICAL PULP
DEMAND DISTRIBUTION, BY GRADE
(millions of metric tons)

2014 WORLD CHEMICAL PULP
DEMAND DISTRIBUTION, BY REGION
(millions of metric tons)

5.3%

3.4%

1.5%

d
l
r
o
W

(0.5%) 0.2% 0.2%

0.4%

e
p
o
r
u
E
n
r
e
t
s
e
W

a
c
i
r
e
m
A
h
t
r
o
N

a
c
i
r
f
A
/

a
i
s
A
r
e
h
t
O

n
a
p
a
J

a
n
a
e
c
O

a
n
h
C

a
c
i
r
e
m
A
n
i
t
a
L

e
p
o
r
u
E
n
r
e
t
s
a
E

Source: PPPC

● Eucalyptus
● NBSK
● Other
● SBSK
● NBHK
● SBHK
Total world demand

20.5
14.0
9.3
6.4
4.4
1.1

37%
25%
17%
11%
8%
2%

55.7 100%

● China
● Western Europe
● Other Asia / Africa
● North America
● Latin America
● Eastern Europe
● Japan
● Oceania
Total world demand

16.1
15.7
8.2
7.7
3.4
2.2
2.2
0.3

29%
28%
15%
14%
6%
4%
4%
–

55.8 100%

BUSINESS SEGMENTS

A NATURAL
CHOICE

Resolute is a major producer of lumber
and other wood products for the
residential construction and home
renovation markets, as well as for
specialized structural and industrial
applications.

We operate 15 sawmills in Canada that
produce construction-grade lumber
sold in North America, mostly on the
East Coast. Our sawmills produce stud
and dimension spruce-pine-fir (SPF)
lumber and are a major source of
wood chips for our pulp and paper mills
and wood waste we use to fuel
our power cogeneration assets and
other operations. In 2014, we shipped
1.5 billion board feet of construction-
grade lumber within North America.

In Canada, we also operate two
remanufactured wood products facilities
that produce bed-frame components,
finger joints and furring strips, two
joint-venture engineered wood
products facilities that produce I-joists
for the construction industry, and a
wood pellet plant.

WOOD PRODUCTS

Building techniques can change, but wood is always part of the plan.
From framing lumber to flooring and roofing components, you’ll find
Resolute’s wood products on the job in new home construction and renovations.

INVESTING IN
NORTHWESTERN ONTARIO

As part of a C$90 million investment
in Ontario, we built a wood pellet plant
at our Thunder Bay sawmill site, which
began operation in October 2014.
At full capacity, the facility will produce
50,000 metric tons of pellets annually
from residual sawdust, a by-product
of the sawmill. The plant is under
a ten-year contract to supply
45,000 metric tons of pellets annually
to Ontario Power Generation’s
Atikokan Generating Station, which
was converted from coal-burning
to wood pellets.

Resolute’s significant investment in
Northwestern Ontario includes the
refurbishment of the Ignace sawmill,
which restarted in the fourth quarter
of 2014. Idled since 2006, the facility
has seen several upgrades to existing
equipment and is expected to reach
its productivity target by year-end.
Work continues on the construction
of the new Atikokan sawmill, which is
expected to begin ramping up in
the second quarter of this year.

The new and upgraded Northwestern
Ontario facilities will have a total annual
production capacity of 260 million
board feet.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT29

Peter Pajunen, Thunder Bay sawmill

● ON SUSTAINABILITY

We adhere to strict, internationally recognized sustainable
forest management (SFM) and chain of custody (CoC) standards
that provide customers with the assurance that the wood fiber
we use originates from responsibly managed forests. All of
the woodlands we manage or on which we hold significant
harvesting rights are third-party certified to at least one of
three globally recognized standards: FSC, SFI and CSA. And we
have implemented fiber-tracking systems at all of our facilities
that are also third-party certified to one or more internationally
recognized CoC standards, namely FSC, SFI and PEFC.

● MARKET TRENDS

NEW PRIVATELY OWNED HOUSING UNITS STARTED
(millions of units)

2.1

2.0

1.8

1.7

1.6

1.8

1.4

0.9

0.6

0.9

1.0

0.8

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: U.S. Census Bureau

Sustainability Performance
Fiber and Forestry
Lasting Collaboration with First Nations
Engaging in Dialogue
Energy and Climate Change
Mill Environmental Performance
Human Resources
Health and Safety
Community Involvement
Recognizing the Contributions of Our Employees

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

SUSTAINABILITY
PERFORMANCE

BUILDING A
SUSTAINABLE FUTURE

WORKING WITH
OUR STAKEHOLDERS

At Resolute, we believe that
sustainability helps us build and
enhance our competitiveness and
long-term profitability. This relationship
between sustainability and financial
performance is reflected in our
company’s vision, our corporate values
and the way we do business every day.

We balance the three pillars of
sustainability – environmental, social
and economic – to become not only a
more efficient company, but a better
employer, a stronger partner for our
customers and more deeply engaged
in the communities in which we live
and work.

This is our third annual report
combining both financial and
sustainability performance reporting.
A more detailed review of our
sustainability activities will be
available on our website this summer.
This combined report reflects
our vision that sustainability and
profitability drive our future.

We are committed to building solid
relationships with a broad range of
stakeholders by maintaining ongoing
outreach and developing strategic
partnerships through a variety
of formal and informal channels.
We are open to discussion and value
input from customers and various
interested parties, including employees,
First Nations, environmental and other
non-governmental organizations
((E)NGOs), business partners,
governments, investors and
members of the general public.

Through our information-sharing
program, for example, we build and
maintain strong relationships with
community leaders in our operating
locations. These groups meet regularly
to provide a forum for discussing a
range of issues of mutual interest
to participants – from harvest area
allocation and energy conservation
to controls for noise pollution.

We also focus on developing
constructive relationships with
First Nations, with whom we share a
common interest in ensuring that our
forests continue to provide for future
generations. A key aspect of this focus
is to engage in dialogue with chiefs,
councils and elders in communities in
our operating areas to ensure that the
company takes local environmental,
social and economic considerations
into account.

Working together is the best way to
foster trust with First Nations and
individuals that are most directly
impacted by our operations, as well as
the groups that share our interest in
managing forests sustainably over
the long term.

SUSTAINABILITY COMMITMENTS
AND PERFORMANCE

In 2011, we established a set of
ambitious sustainability commitments
reflecting our approach to balancing
environmental, economic and social
priorities. Since then, we have been
tracking and reporting on our progress
annually with a view to achieving, or
surpassing, the vast majority of our
targets before the end of 2015.

Our year-over-year performance has
steadily improved, and we continue to
build on a solid base of what we believe
are meaningful accomplishments.
The following table provides a summary
of our performance for 2014.

SUSTAINABILITY PERFORMANCE (CONTINUED)

Based on the material issues identified
by our stakeholders, Resolute created a
sustainability strategy that drives all of
our company’s sustainability activities
and serves as the framework for public
commitments.

SCOPE AND
GOVERNANCE

We report sustainability performance
data for all the operations we owned
or operated as at December 31, 2014.
Our 2014 sustainability performance
data is preliminary and subject to
change. The information presented
in this report will be confirmed on
our website this summer. The website
will also include other sustainability
performance indicators and disclosures
prepared in accordance with the
GRI’s G4 guidelines.

While the overall responsibility for
our sustainability performance resides
with our president and chief executive
officer, we rely on our sustainability
committee to ensure that we deliver on
our key commitments and implement
our strategies.

The sustainability committee is a
cross-functional group comprised
of senior managers from various
departments, including sales, human
resources, purchasing, engineering
and environment. It is accountable
to the executive team and is chaired
by the vice president, corporate
communications, sustainability
and government affairs.

The sustainability committee
recommends strategies, sets goals,
measures results, oversees reporting,
communications and continuous
improvement, and assesses stakeholder
expectations and sustainability trends.
The committee is also responsible
for providing project oversight on
the company’s key sustainability
commitments.

DEFINING ISSUES OF HIGH CONCERN
FOR OUR STAKEHOLDERS

We report sustainability performance
on issues we consider to be material,
based on a detailed analysis completed
in 2010 as part of our first Global
Reporting Initiative (GRI) disclosure.

Resolute defines as “material”
sustainability issues that are of high
concern to internal and external
stakeholders and have the potential
to impact our business performance.

From the start, our work on determining
material issues was focused on
improving our understanding of
stakeholder information requirements.
Assessments were conducted to
identify the issues that mattered most
for monitoring and reporting. As part
of that process, we commissioned
an independent third party to
conduct interviews with members
of the research community, industry,
government, customers, (E)NGOs,
organized labor and investors.

In 2013, a materiality assessment update
was conducted to ensure that the issues
identified in 2010 continued to be of
great importance and impact to our
stakeholders. As a result of this update,
three additional issues were identified
as material: First Nations relations and
economic partnerships, conservation
and protected areas, and transparency
and communication. 2014 is the first
year we will be reporting our progress
on the public commitments associated
with these new issues.

It is important to note that material
issues do not encompass all the issues
we address. For example, issues
that require compliance but are not
identified as material to a stakeholder
group are still monitored and reported
on internally, but are not detailed in
this report.

As well, the materiality of issues can
change over time. Some may lose
importance as they are of lower
immediate concern to stakeholders
and the company. Our objective is to
monitor materiality on a continuous
basis, for example, through regular
interaction with stakeholders.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTSUSTAINABILITY PERFORMANCE
CARBON/ENVIRONMENTAL FOOTPRINT AND RESOURCE MANAGEMENT

STRATEGIC AREA OF PRIMARY
SUSTAINABILITY FOCUS

COMMITMENTS

PERFORMANCE IN 2014

2014
RATING

Reinforce our
environmental credentials,
taking appropriate steps
to responsibly manage our
environmental footprint

MOST MATERIAL ISSUES
AFFECTING BUSINESS

• Sustainable forest management

(to third-party certification
standards)

• Fiber supply access
• Biodiversity
• Conservation and
protected areas
• GHG emissions
• Energy consumption
• Water consumption and

protection of water resources

• Environmental regulatory

compliance

• Environmental incidents

LEGEND

++ Surpassed target
+ Achieved key milestone
= Maintained achievement
> Ongoing progress
x Target unattained
– Changed circumstances

Maintain 100% certification of
Resolute-managed woodlands to
sustainable forest management (SFM)
certification standards

• 100% of managed forests certified

to Forest Stewardship Council® (FSC®),
Sustainable Forestry Initiative® (SFI®)
and/or CSA Group (CSA)

Maintain chain of custody certification,
either to FSC, SFI or Programme
for the Endorsement of Forest
Certification (PEFC) at all North
American pulp and paper mills and
wood products facilities under
company management

Increase FSC forest certification
of managed forests from 18% in 2010
to 80% by 2015

• Instituted fiber-tracking systems at all

North American facilities, all of which are
third-party certified according to one or
more of three internationally recognized
CoC standards, namely FSC, SFI and PEFC

• A specific FSC target is no longer realistic or

appropriate considering recent developments
and interpretations, as more fully described
on page 38

• Resolute remains committed to 100%
certification to one or more of three
internationally recognized sustainable
forest management standards, inclusive
of FSC, SFI and CSA

–

Achieve a 65% absolute reduction of
scope 1 and 2 GHG emissions by 2015
over the 2000 base year

• Reduced total GHG emissions by 67.5%

since 2000, surpassing 65% reduction target
two years ahead of schedule

Implement standard scope 3 GHG
accounting and begin full scope 324
reporting by 2015

• Significant progress towards full reporting

in 2015, including the development of
preliminary GHG scope 3 emission
inventories for 2012, 2013 and 2014

• Implemented a tracking system to

measure emissions from our supply chain
and product transportation to customers

Provide disclosure on regulatory
infractions in our woodlands
operations and set a target for
annual infractions, with a long-term
goal of zero infractions

• Timely disclosure of regulatory infractions in

our annual and sustainability reporting

• Set annual target of 3 or less internally
identified situations that could lead to
regulatory infractions in each province

Continue to improve our
understanding of our water footprint;
continue to voluntarily report to the
Carbon Disclosure Project’s (CDP)
Water Disclosure program

Reduce environmental incidents
by 10% in 2014 compared to
the 2013 baseline, with a long-term
goal of zero incidents

Implement ISO 14001-certified
environmental management system
(EMS) at all our pulp and paper,
sawmill and woodlands operations

• Voluntarily reported to CDP
Water Disclosure program

• Recorded 52 environmental incidents

in 2014, a reduction of 19% compared to
the 2013 baseline

• Established 2015 target of 8% reduction

over 2014 baseline

• ISO 14001–certified EMS implemented at all
pulp and paper mills except Menominee mill,
all Canadian woodlands operations and all
wood products facilities25, except recently
opened Ignace sawmill and under-
construction Atikokan sawmill

24. The indirect greenhouse gas emissions listed in scope 3 include all indirect emissions not covered in scope 2, such as emissions from the production

of purchased materials or transportation activities not controlled by the company.

25. Does not include nonconsolidated entitites: Opitciwan (Quebec) and Produits Forestiers Petit-Paris (Quebec) sawmills.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
SUSTAINABILITY PERFORMANCE
PUBLIC ENVIRONMENTAL AND SOCIAL CONSCIOUSNESS

STRATEGIC AREA OF PRIMARY
SUSTAINABILITY FOCUS

COMMITMENTS

PERFORMANCE IN 2014

2014
RATING

Build solid community
relations, recognizing that
economically viable and
civically involved companies
support long-term regional
prosperity

Reinforce our
environmental credentials,
taking appropriate steps
to responsibly manage our
environmental footprint

MOST MATERIAL ISSUES
AFFECTING BUSINESS

• Community and

stakeholder engagement

• First Nations and

economic partnerships

• Transparency and
communications

By end of 2015, enhance
information-sharing
community groups at all
company operations;
embed community
stakeholder outreach
efforts across organization,
sharing best practices
and monitoring activities

Identify business
opportunities with
First Nations and identify
means to increase
Aboriginal employment

Make yearly charitable
contributions with emphasis
on environmental
stewardship, and health
and education programs

Ensure and sustain
ongoing outreach with
stakeholders and develop
key strategic partnerships

Develop innovative products
that help our customers
reduce their environmental
footprint

• Established information-sharing community groups,

covering all North American locations, one year ahead
of schedule

• We are continuing to work on institutionalizing
stakeholder outreach across the company,
promoting open discussions and enhancing
the value proposition for all involved participants

• In addition to other partnerships, signed economic

benefit sharing agreements worth about C$100 million
with First Nations in Northwestern Ontario – linked to
the opening of the Atikokan and Ignace sawmills

• Also committed to wood supply contract with the

Mashteuiatsh community in Lac-Saint-Jean, Quebec

• Collaborative agreements currently under discussion

with several First Nations communities

• Made charitable contributions of approximately

$1 million

• Maintained regular engagement with key stakeholder

groups such as employees/unions, investors,
governments, (E)NGOs, First Nations, local
communities, suppliers/partners and customers

• Maintained partnerships with WWF® Climate Savers
program, Forces AVENIR, the Innu community of
Mashteuiatsh, among others

• Continued Forum boréal activities in Quebec and

launched Boreal Forum in Ontario – two fact-based
online platforms to facilitate an open and constructive
conversation on sustainable forest management
in the boreal forest

• Added two new super-brite grades under

the AlignTM umbrella – Hybrid and Alternative

• Launched joint venture with Mercer International Inc.

(Performance BioFilaments Inc.) to develop
commercial applications for cellulose filaments

• U.S. Food and Drug Administration confirmed that

our recycled bleached kraft pulp is suitable for use in
polycoated paper and paperboard grades intended
for use in contact with food

• Opened Thunder Bay wood pellet plant, which at

capacity will produce 50,000 metric tons of pellets
annually from residual sawdust collected at the
adjacent Thunder Bay sawmill

LEGEND

++ Surpassed target
+ Achieved key milestone
= Maintained achievement
> Ongoing progress
x Target unattained
– Changed circumstances

Maintain effective
sustainability oversight and
management practices

• Sustainability committee continues to monitor

sustainability performance and recommend areas
for improvement

Maintain annual sustainability
reporting practices and
transparency

• Issued third combined annual report with substantial

sustainability content; fourth GRI-compliant reporting
to be launched online in 2015

Roll out communications on
our Supplier Guidelines and
measure dissemination

• Developed and re-communicated Supplier Guidelines
to about 150 top suppliers, representing over 25% of
our annual purchasing spend

=
=
>

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
SUSTAINABILITY PERFORMANCE
DEMOGRAPHIC CHANGES AND LABOR RELATIONS

STRATEGIC AREA OF PRIMARY
SUSTAINABILITY FOCUS

Position Resolute as a
competitive employer,
attracting and retaining
employees based on
opportunities to quickly
learn and grow within a
dynamic organization

MOST MATERIAL ISSUES
AFFECTING BUSINESS

• Workforce turnover and

recruitment needs

• Labor relations
• Pension obligations
• Code of conduct and

business ethics

• Impact of entering and exiting

operating communities

• Employee health and safety

LEGEND

++ Surpassed target
+ Achieved key milestone
= Maintained achievement
> Ongoing progress
x Target unattained
– Changed circumstances

COMMITMENTS

PERFORMANCE IN 2014

Through 2015, implement new
human resource practices to support
workforce renewal and retention,
and engage employees in company’s
sustainability-focused vision and values

• Hired 1,089 new employees and raised

company profile as a competitive employer
through new recruitment practices

• Continued to support internship and

co-op programs, and launched strategic
organization initiative, an integrated
leadership system to monitor performance
effectiveness

Renew expired or expiring collective
agreements at pulp, paper and wood
products operations, ensuring our
competitiveness as an employer while
supporting our long-term viability

• Successfully negotiated master agreements
with 4 U.S. and 10 Canadian pulp and paper
mills, 4 Quebec sawmills and with the
recently opened Ignace sawmill in Ontario

Train 100% of employees on our new
Code of Business Conduct; provide
additional training on anti-bribery,
corruption and whistleblower
programs

• Trained 100% of employees on the new

Code of Business Conduct (which
incorporates the whistleblower program)

• Employees are required to re-sign

the code on an annual basis

• Additional trainings on the anti-bribery and

corruption programs are scheduled for 2015
for targeted groups of employees

Roll out communications on
new diversity, equal employment,
anti-discrimination and harassment
policies

• Effectively communicated new diversity,

equal employment, anti-discrimination and
harassment policies to 100% of employees

Achieve an Occupational Safety and
Health Administration (OSHA)
incident rate of 0.99 or below for 2014,
with a long-term goal of zero injuries;
achieve a severity rate of 27 or below
in 2014; increase disclosure around
our near-miss reporting26

• Achieved an OSHA incident rate of 0.83

but a severity rate result of 3327

• Set 2015 targets to achieve an OSHA

rate of 0.95 or below and a severity rate
of less than or equal to 27

• Increased disclosure on near-miss ratios,
management and reporting systems
in annual report

Ensure each employee submits
2 to 3 near-miss reports annually

• Achieved an average near-miss per employee

ratio of 3.8, surpassing the target of
2 to 3 annual reports per employee

2014
RATING

26. Health and safety statistics are calculated for all employees, with the exception of near-miss reporting, which is only applied to employees at operating sites.

27. The severity rate is calculated by adding the number of workdays lost to the number of restricted workdays due to injury, multiplied by 200,000 hours worked,

divided by total number of hours worked.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

FIBER
AND FORESTRY

Resolute’s commitment to producing
quality products that meet the
criteria of today’s environmentally
conscious stakeholders begins with
responsible fiber sourcing. This entails
the responsible management of forests
entrusted to our care, careful tracking
of wood fiber sources, and use of
recycled fiber.

Forest certification and fiber tracking
help to ensure the sustainability of our
fiber supply and other forest values.
Strict adherence to internationally
recognized sustainable forest
management (SFM) and chain of
custody (CoC) standards assures our
customers that the wood fiber we use
comes from responsible sources.

2014 highlights of our work in
responsible forest management
and wood fiber sourcing include:

• 100% of the woodlands we

manage are third-party certified
to internationally recognized
SFM standards.

• 88.8% of the wood supply for our
sawmills and 47.3% of virgin wood
fiber inputs for our pulp and
paper mills are SFM-certified.

• 40% of total fiber inputs for our pulp

and paper mills are sourced from
sawmill by-products (wood chips).

• 11.9% of total fiber inputs for our pulp

and paper mills are sourced from
recovered paper. In 2014, we used
0.9 million metric tons of recovered
paper in our production processes,
and the recycled fiber content in the
newsprint we produced averaged
18%28.

• 100% of Resolute’s North American
manufacturing facilities have a CoC
tracking system that meets one or
more of the following standards:
Forest Stewardship Council® (FSC®),
Sustainable Forestry Initiative® (SFI®)
and Programme for the Endorsement
of Forest Certification (PEFC).
All of these require that 100% of
the fiber processed meets minimum
standards (also known as controlled
wood standards, or due diligence) that
relate to risks of illegal logging, wood
harvested in violation of human rights
and other important sustainability
issues. This enables manufacturers
and traders to avoid timber and timber
products from unacceptable sources.
Depending on the tracking system,
additional standards apply related to
high conservation values, conversion
of forests to non-forest uses, genetically
modified tree planting, corruption,
indigenous rights and/or workers’ rights.

For 2015, we remain committed to
maintaining 100% certification of
Resolute-managed woodlands to SFM
standards, and 100% CoC certification
at all of the North American pulp and
paper mills and wood products facilities.

WHERE DOES OUR WOOD AND
VIRGIN FIBER COME FROM?

• Canadian public land on which
we hold harvest rights, volume
commitments, short-term volume
allocations and harvest blocks
acquired through auction sales.

• Purchases from private forest
landowners in Canada and the
United States.

• Wood chips from Resolute

sawmills and from third-party
suppliers.

• Property the company owns

or leases.

2014 CONSUMPTION AND SOURCING OF VIRGIN WOOD FIBER – PULP AND PAPER MILLS

Total fiber consumed (odmt)

Proportion of fiber consumed
with SFM certification, %

Proportion of the total fiber supply
that is sourced through FSC controlled
wood, SFI sourcing requirements
or PEFC due diligence, %

Canadian pulp and paper mills
U.S. pulp and paper mills

Total

3,433,800
3,305,513

6,739,313

76.3
1 7.1

47.3

100
100

100

2014 CONSUMPTION AND SOURCING OF WOOD – SAWMILLS

Total wood consumed (m3)

7,502,77229

Proportion of wood consumed
with SFM certification, %

Proportion of the total wood supply
that is sourced through FSC controlled
wood, SFI sourcing requirements
or PEFC due diligence, %

88.8

100

Canadian sawmills

28. Includes recycled bleached kraft pulp (RBK).

29. Does not include Opitciwan (Quebec) and Produits Forestiers Petit-Paris (Quebec) joint ventures. Does not include our remanufactured wood products

facilities at Château-Richer (Quebec) and La Doré (Quebec) nor our engineered wood products facilities, Abitibi-LP Engineered Wood Inc. and
Abitibi-LP Engineered Wood II Inc. (Quebec).

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT37

Ontario has permanently protected
over 10% of its total area with
654 parks, as well as reserves and
other conservation designations34,
with a total of 12% set aside in
the managed forest35. In addition to
these protected areas, nearly 40%
of the boreal forest is located north
of the Area of the Undertaking in
Ontario and has been made off-limits
to commercial forestry activities. When
the provincial government approves
timber harvesting operations, it bases
its decisions on comprehensive forest
management plans that factor in public
input, scientific research and economic
development.

ENSURING THE SUSTAINABILITY
OF OUR FIBER SUPPLY

All of the forest lands we manage are
in Canada, where sustainable forest
management principles are used to
balance environmental, social and
economic objectives30. Canadian forest
products companies operate in a highly
regulated environment with active
enforcement from federal, provincial
and local governments. In fact, a Yale
University study and a comparative
study by Indufor Oy have cited Canada’s
forestry regulatory environment as one
of the most stringent in the world31.

Establishing a network of protected
areas is a key consideration in
sustainable forest management.
As well, public consultation is critical
for the development of collaborative
forest management strategies to
ensure that social needs are satisfied
and forest values are protected.

In Quebec, nearly 42% of the continuous
boreal forest is off-limits to harvest,
as it is beyond the northern limit for
forestry allocations. Where forestry
activities are permitted, an additional
30.4 million acres (12.3 million hectares,
or 38%) have been excluded for
environmental purposes or due to
conditions that limit harvest activities.
That leaves a total of 48.9 million acres
(19.8 million hectares) available for
forest management planning, or about
36% of the total continuous boreal
forest, which means that, in Quebec, a
total of 64% of the continuous boreal
forest is inaccessible to the forest
products industry32. While the process
of completing the protected area
network is ongoing, as of October 2014,
Quebec had permanently protected
over 9% of the province’s total area,
or 37.8 million acres (15.3 million
hectares)33.

30. www.nrcan.gc.ca/forests/canada/sustainable-forest-management/13183

31. Indufor Oy, Comparison of Selected Forest Certification Standards, Helsinki, Finland, July 3, 2009. See also Cashore, Benjamin,

Global Environmental Forest Policies: Canada as a Constant Case Comparison of Select Forest Practice Regulations, Yale University, 2004.
Learn more at www.fpac.ca/index.php/en/environmental-progress#sthash.Pb9DhKlm.dpuf

32. Fiche thématique du Bureau du forestier en chef du Québec

33. www.mddelcc.gouv.qc.ca/biodiversite/aires_protegees/registre/

34. www.ontario.ca/environment-and-energy/ontarios-parks-and-protected-areas

35. www.ontarionature.org/discover/resources/PDFs/toolkits/PAToolkit/7_RoomtoGrow.pdf

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT38

certificate can be reinstated within
a few months.

Finally, an FSC certificate covering the
Caribou Forest in Ontario expired on
January 13, 2015, at the conclusion of
its five-year term.

REGULATORY
COMPLIANCE

Our company prides itself on
sustainable forest management plans
and high environmental standards. In
the woodlands of Quebec and Ontario
where we operate, each provincial
government has its own system to
ensure compliance with forestry and
environmental laws and regulations.
Compliance inspectors visit our sites to
observe everything from riparian buffer
distances to drainage installations,
noting any regulatory non-compliance.

In Ontario, a combination of
government and forest industry
compliance inspectors identify instances
of non-compliance and, where possible,
companies are given an opportunity
to rectify the situation. Administrative
penalties and fines are imposed by
the government when an issue cannot
be addressed, generally within a
three-year period.

In Quebec, government agents carry
out the compliance inspections without
involving the company in the process.
Non-compliance charges can be filed
several years after an incident occurs,
and legal proceedings can take an
additional two years36. In many cases,
non-compliance situations that have
been corrected will still incur a fine.

FIBER AND FORESTRY (CONTINUED)

SUSTAINABLE FOREST
MANAGEMENT CERTIFICATION

In addition to complying with
government-approved forest
management plans, comprehensive
regulations, and recovery plans for
species at risk, Resolute has sought out
independent certification for 100% of
the forests we manage in Canada.

In 2014, Resolute successfully renewed
SFI certificates for all of our managed
woodlands in Quebec and maintained
our SFI sustainable forest management
certification across Ontario.

We continue to be one of the
largest holders of FSC sustainable
forest management certificates in
North America and have successfully
renewed or maintained our FSC
certificates in several areas, including
the Mauricie, Abitibi and North Shore
regions of Quebec.

Although the company received notice
of three temporary suspensions under
the FSC National Boreal Standard in
2013, and one of those certificates
(Mistassini-Péribonka, Quebec) expired
on December 3, 2014, all of the areas
in question remain certified under
the SFI standard.

Details of the three certificate
suspensions are as follows:

In Quebec, one of the two suspended
certificates in Lac-Saint-Jean covers
an area at the center of a complex
territorial dispute between two First
Nations and the Quebec government.
Resolute plays no role in this dispute.
For this certificate and the other
suspended one in Quebec, FSC
auditors also raised issues related to
the provincial government’s caribou
conservation plans, which were deemed
inadequate as they relate to elements
of the federal caribou recovery strategy,
more specifically the disturbance
level. However, other holders of FSC
certificates for neighboring territories in
the Lac-Saint-Jean region have had their
certificates renewed, despite having

submitted the same caribou habitat
conservation plan that was considered
unacceptable when Resolute’s FSC
certificates were audited. These are
the two main issues that led to the
temporary suspension of Resolute’s
certificates in the Lac-Saint-Jean region.

Statements from the government
confirm that the matters described
above are the government’s concern
and that the Province of Quebec is
responsible for both the territorial
disputes and the caribou habitat issues.
FSC Canada asked the certification
body to extend the temporary
suspension of one of Resolute’s Quebec
certificates until July 2015 to give the
government time to settle its dispute
with the Cree First Nation, which dates
back to 2002, and resolve the issues
with its caribou conservation plan.

In Ontario, the Black Spruce and
Dog River-Matawin FSC certificate
suspension was based on issues related
to securing support from interested
parties for Resolute’s FSC protected
area proposal. The company had
planned to fulfill this requirement as
part of its participation in the Canadian
Boreal Forest Agreement (CBFA)
process, whose membership includes
environmental groups. However, the
process has been difficult in light of the
breakdown of negotiations in May 2013.
A new conformance verification audit
(CVA) was carried out in April 2014.
In order to prevent the publication
of a problematic report, Resolute
sought a legal injunction following
the 2014 audit.

In February 2015, a Settlement
Agreement was reached with the
organization that conducted the
original CVA, which included provisions
to maintain the sealed status of all
documents pertaining to the original
CVA and conduct a new audit with a
different independent audit team within
six months. Resolute has developed an
action plan for securing the required
support, and we are hopeful that this

36. In the province of Quebec, proceedings with respect to offences committed under the “Regulation respecting standards of forest management for forests

in the domain of the State” are instituted by the Director of Criminal and Penal Prosecutions under the Code of Penal Procedure.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTAlthough we have a long history of
keeping our annual non-compliance
rates below the industry average,
Resolute ensures that regulatory
non-compliance incidents, and the
associated fines, are closely monitored.
That is why in 2009 Resolute
implemented a zero-tolerance policy for
forestry non-compliance and has been
working steadily to achieve that goal
by actively identifying risks.

In 201437, Resolute was fined C$4,625
for two non-compliance incidents: one
in Quebec, which dated back to 2012,
and the other in Ontario, detected in
2013. 2014 is the first year Resolute
is publicly reporting our progress,
disclosing two situations identified
internally that could potentially lead to
regulatory infractions in Ontario and
two identified in Quebec.

We have set our 2015 target of three
or less internally identified situations
that could potentially lead to regulatory
infractions in each of the provinces
where we operate. This approach will
help measure our progress towards zero
infractions by proactively identifying
issues and remediation actions in a
more immediate time frame in order to
prevent infractions before they occur.

WE VALUE AND SUPPORT
BIODIVERSITY

Operating in a highly regulated
environment with active enforcement
from federal, provincial and local
government partners, Resolute benefits
from numerous conservation activities,
sound protected-area development,
and collaborative forest management
strategies. In Ontario and Quebec
where Resolute has tenures, biodiversity
monitoring is usually carried out by
the provincial agencies responsible
for wildlife policies and wildlife
management.

Even in high conservation value forests,
harvesting is not prohibited as long
as effective strategies are in place to
protect the high-value attributes that
have been identified. These strategies
may include defining protected areas,
deferring forest management activities
on selected large tracts, and developing
road management strategies, as well as
natural and planted forest regeneration.
The three independent certification
standards (FSC, SFI and CSA), to at
least one of which our forests are
certified, require the consideration of
the latest scientific evidence on species
conservation and management.

In coordination with the provincial
governments, Resolute also seeks to
identify critical habitat areas for species
of interest, such as the woodland
caribou. Our goal is to ensure that
our forest management plans protect
such areas and minimize disturbance
to the populations in question.
In our work with the CBFA, we helped
to achieve a preliminary agreement
in Northeastern Ontario that set
2.06 million acres (835,000 hectares)
aside for conservation and other
ecosystem services. In Northwestern
Ontario, Resolute also proposed the
protection of an additional 504,000
acres (204,000 hectares) of forest for
caribou habitat, on top of the nearly
5 million acres (2 million hectares) of
Ontario forests that have already been
set aside as protected spaces, parks and
other initiatives over the past 15 years.

In Ontario, Resolute forest management
units (FMUs) have the highest
percentage of land set aside as
protected areas than any other FMUs
in the province. In Quebec, we put
forward an additional 1.71 million
acres (692,000 hectares) in possible
protected areas, focusing on prime
habitat for caribou conservation.

For more information on how
Resolute manages forest lands
responsibly, please visit
www.resolutefp.com/sustainability.

Saguenay–Lac-Saint-Jean (Quebec) region

Michel Belleau, Lac-Saint-Jean woodlands operations

37. Disclosed regulatory infractions as they would be published on the provincial ministry website only include woodlands operations directly managed by Resolute.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTFIBER AND FORESTRY (CONTINUED)

1997

2005

2013

Rapid growth
follows harvesting

2005

2013

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT41

OUR FORESTS
ARE 100%
REGENERATED

In Canada, under half of one percent of
the boreal forest is harvested each year.
In comparison, more than five times that area
is disturbed annually by natural causes such as
forest fires, insects and disease38.

In the boreal forest, approximately 75%
of the area harvested through forestry
grows back naturally. The other 25% is promptly
reforested via seeding or planting of seedlings.

Managing timberlands responsibly,
using wood before natural disturbances occur,
and salvaging wood in the wake of natural
disturbances can safeguard the forest’s
natural life cycle and ensure its sustainability.

38. 2014. Natural Resources Canada. The State of Canada’s Forests: Annual Report 2014. https://cfs.nrcan.gc.ca/publications?id=35713

• Another dispute involves the

Algonquins of Barrière Lake in
Quebec, who sent a statement to the
provincial government concerning
the lack of consultation over logging
permits issued for the area. These
consultations are carried out by
government representatives, with or
without the involvement of Resolute.
The major challenge here stems from
an unresolved matter in the trilateral
territorial agreement between the
provincial and federal governments
and the First Nation. It is the
governments’ responsibility to
settle this dispute.

• The Atikamekw First Nation, also in
Quebec, declared sovereignty over
a 19.8-million acre (8-million hectare)
area in September 2014. The
community has stated that it will
not allow any forestry work on its
territory in Quebec unless it has given
prior approval, a process that must
be led by the provincial government.

LASTING COLLABORATION
WITH FIRST NATIONS

In some of our operating communities
in Canada, First Nations peoples form
a large portion of the population.
Resolute respects the importance of
Canada’s land, water and forests to its
Aboriginal peoples, and we understand
that these resources are critical to the
prosperity of Aboriginal communities.

As outlined in our Aboriginal Peoples
Policy, Resolute is committed to
nurturing constructive relationships
with First Nations, including the need
to respect treaties, traditions and
rights, to pursue mutually beneficial
commercial relationships, and to
support job training.

Public consultation is an essential step
in the sustainable forest management
planning process. Resolute actively
engages First Nations in the review
of our harvesting plans to ensure that
the company takes into account local
cultural, environmental, social and
economic considerations.

While industry is often called upon
to participate in discussions,
in Canada the legal responsibility
to consult with First Nations and
harmonize forest management
practices with their traditional land
uses lies with government. Within this
framework, Resolute collaborates
with First Nations and governments
to promote constructive discussions
that we hope will lead to long-term
solutions.

FOREST MANAGEMENT
PLANNING

In Ontario, the company maintains close
ties with 27 First Nations communities
and collaborates on the development of
mutually acceptable management plans
for the areas where we operate.

In Quebec, Resolute regularly engages
with 12 different communities from five
separate First Nations to harmonize
our operating plans with their use of
traditional lands.

In a small number of cases, agreements
have not been reached due to a variety
of factors.

• In Quebec, a land claim issue

between the Cree, the Innu and the
Government of Quebec is one of the
major factors behind the suspension
of one of Resolute’s FSC certificates,
as detailed in the Fiber and Forestry
section on page 38 of this report.

This will be the 12th year of our unique partnership with Resolute
at its Thunder Bay sawmill. Throughout the relationship, Resolute
has been open and engaged with us, willing to create meaningful
employment, provide training and help support the long-term
sustainability of the Fort William First Nation. The company
understands that First Nations peoples have a place at the table,
a say in what matters in their community. That sets an example.

– Chief Georjann Morriseau, Fort William First Nation

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT43

MUTUALLY BENEFICIAL
INITIATIVES

Resolute has a number of partnerships
with members of First Nations
communities. These include working
together to identify employment and
contracting opportunities, providing
support for educational programs
and cultural-landmark mapping,
and collaborating on agreements,
planning, road construction and forest
regeneration. The following examples
from 2014 illustrate what is possible
when we join forces on sustainable
initiatives.

Ontario
Multi-year contracts in excess of
C$100 million were awarded to six
First Nations resulting from Resolute’s
Northwestern Ontario investments in
the Atikokan and Ignace sawmills, as
well as from the production capacity
increase at the Thunder Bay sawmill
and the addition of a wood pellet
plant at the Thunder Bay site. The
Memorandum of Agreement, renewed
in February 2015, has yielded contracts
for: construction work at Resolute’s area
sawmills; the transportation of wood
chips, biomass and lumber from the
sawmills; yard services to manage the
loading and unloading of logs, lumber
and by-products; and log harvesting
and delivery. These contracts are in
addition to existing agreements, worth
approximately C$50 million a year,
that pertain to our other operations
in the region.

Quebec
In the Lac-Saint-Jean region of Quebec,
Resolute worked with the Mashteuiatsh
First Nation and the government of
Quebec to complete a consolidation
project after the company’s Roberval
sawmill closed in 2014. As a result, over
50% of the Roberval wood allocation
was transferred to the community of
Mashteuiatsh, while the remainder
was transferred to our La Doré and
Saint-Félicien sawmills.

• The Opitciwan (Quebec) sawmill
is a unique joint venture that has
operated successfully since 1999.
The Atikamekw Council of Obedjiwan
has a 55% interest in the joint
venture, while Resolute owns 45%.
In September 2013, the sawmill was
awarded the prestigious Aboriginal
Business Leadership Award by the
Forest Products Association of
Canada and the Canadian Council
for Aboriginal Business.

PARTNERSHIPS
AND VENTURES

• Our Thunder Bay (Ontario) sawmill,

which operates under a unique
business model with Resolute and
the Fort William First Nation, is the
first facility in Canada to work
under regulations created by the
First Nations Commercial and
Industrial Development Act, which
facilitates industrial development
with First Nations on their land.

• Resolute has been purchasing
seedlings from a tree nursery
established by the Wabigoon Lake
Ojibway Nation (Ontario), with the
company’s help, in the late 1990s.
The company purchases more than
1.5 million seedlings annually from
this venture to support regeneration
activities.

• Through our ongoing partnership
with the community of Kitigan
Zibi Anishinabeg, we carry out
forest management and harvesting
activities and pay a stumpage fee
in exchange for volumes allocated
to the First Nation by the
Quebec government.

Resolute and six
First Nations celebrate
a ground-breaking
Memorandum of
Agreement that has
resulted in C$100 million
in new Aboriginal
business.

Front left to right: Chief Will Windigo, Nigigoonsiminikaaning First Nation, Chief Judy White Cloud, Lac des Milles Lacs First Nation, Richard Garneau, President and
Chief Executive Officer of Resolute Forest Products, Chief Earl Klyne, Seine River First Nation, Chief Sara Mainville, Couchiching First Nation, Chief Janice Henderson,
Mitaanjigamiing First Nation, and Chief Norman Jordan, Lac La Croix First Nation

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT44

As one of the founding members of the
CBFA, Resolute has negotiated in good
faith with all parties, offering concrete
proposals and devoting thousands of
hours to the initiative. The company
remains supportive of a collaborative
and inclusive approach, continuing
to believe that the CBFA must fully
engage community leaders, First Nations
and provincial governments in order to
achieve sustainable outcomes.

CONFRONTING
MISINFORMATION

2014 saw an escalation of market
campaign activity by Greenpeace
and other activist organizations.
The inaccurate and deceptive
campaigning is not only impacting
Resolute but also increasing the
fragility of the forest products
industry, and adversely affecting
the social and economic conditions
of northern communities. In spite
of the retraction of false statements,
activists have continued to publish
and broadcast false allegations.
In the face of this persistent approach,
Resolute remains committed to its
legal proceedings against Greenpeace.
It is unfortunate that activists continue
to undermine a collaborative effort,
and their misinformed communications
stand in stark contrast to Resolute’s
top-tier forestry practices and
overall sustainability performance.
The company has a responsibility to
protect its own reputation as well as
that of its employees, customers
and partners.

ENGAGING
IN DIALOGUE

Dialogue at the local level is
essential for building trust and
ensuring collaboration. Open, honest
conversations about environmental,
social and economic issues facing the
forest products industry are important.

Both forums have provided a platform
for fact-based discussions and help
ensure that individual and community
voices are heard regarding sustainable
forest practices and the importance of
forestry to regional economies.

Through the information-sharing
program, members of each facility’s
management team meet regularly with
a range of interested parties, from local
First Nations, governments, business
partners and chambers of commerce
to environmental organizations,
educational institutions, representatives
from other industries, retirees and
others. Whether it involves noise
control issues, energy conservation
or questions about new projects and
investments, our communities engage
in discussions on a variety of topics that
are of importance to everyone involved.

QUEBEC STAKEHOLDERS

In 2013, Resolute launched our first
online forum – Forum boréal – to share
information about the sustainable
management of the boreal forest in
Quebec. This social media platform
also supports ongoing dialogue with a
range of stakeholders in the Quebec
communities where we operate.

Our community outreach in 2014
included public meetings in the
Saguenay–Lac-Saint-Jean, North Shore,
Abitibi-Témiscamingue and Outaouais
regions on matters such as fiber
allocation, woodland caribou and forest
certification. These meetings drew over
750 participants from the four regions.
Meetings were also held with various
First Nations communities.

ONTARIO STAKEHOLDERS

Encouraged by the success of Forum
boréal in Quebec, Resolute launched a
similar initiative for Northern Ontario
audiences in 2014. The new platform,
Boreal Forum, was introduced during
town hall meetings in Thunder Bay,
Atikokan and Ignace with more than
400 people in attendance.

FIRST NATIONS

We focus on encouraging relationships
with First Nations groups, with whom
we share a common interest in ensuring
that our forests continue to provide for
future generations. Our commitment to
developing and nurturing constructive
relationships with First Nations is
outlined in our Aboriginal Peoples
Policy. A key objective of this ongoing
commitment is to engage with chiefs,
councils and elders in operating
communities.

For example, in areas where Resolute
has the lead role in harvest planning,
we actively involve First Nations in the
review of our plans to ensure that we
take into account local environmental,
social and economic considerations.
While this participation is required to
maintain our third-party sustainable
forest management certifications,
it also drives the identification of
material issues that will be targeted
for improvement. As well, it gives both
parties a forum in which to explore
mutually beneficial opportunities.

THE CANADIAN BOREAL
FOREST AGREEMENT

During 2014, Resolute remained an
active and committed participant in the
Canadian Boreal Forest Agreement
(CBFA), which brings together envi-
ronmental groups and forest products
companies to identify solutions for
sustainable development in Canada’s
boreal forest.

While it is at times challenging to find
common ground among organizations
with such diverse interests, Resolute
believes its contributions and overall
commitment to sustainable forestry
have made a positive impact on the
CBFA process.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
Managing for Environmental,
Social and Economic Balance
in the Boreal Forest

ENERGY AND
CLIMATE CHANGE

Reducing our carbon footprint by
enhancing the energy efficiency of our
facilities and increasing the use of lower
carbon fuels is an important focus of our
operational strategy. But that work tells
only part of the Resolute success story.
We invest in clean energy projects,
which reduce greenhouse gas (GHG)
emissions while also cutting our
power costs.

As part of our membership in the
World Wildlife Fund® (WWF®)
Climate Savers program, we committed
to achieving a reduction in absolute
GHG emissions (scope 1 and 2)39 of 65%
below 2000 levels by 2015. Resolute
reports on emissions classified as scope
1 (direct emissions coming from on-site
fuel combustion) and scope 2 (indirect
emissions from purchased electricity
and steam).

Key highlights of our 2014
work include:

• Reducing total GHG emissions by
67.5% since 2000, surpassing our
WWF reduction target
two years ahead of schedule;

• Sourcing 72% of our total energy
needs from renewable sources40;

• Deriving 77% of our fuel energy usage

from biomass41; and

• Replacing the remaining

coal used at our operations with
natural gas, a less carbon-intensive
fuel, in order to become scope 1
coal-free as of April 2014.

ENERGY EFFICIENCY

Considering that energy accounts for
approximately 23% of the company’s
paper production costs, Resolute’s focus
on improving energy efficiency and
replacing high-emission fuels like coal
with less carbon-intensive fuels benefits
both the environment and our bottom
line. In 2014, we converted our Coosa
Pines (Alabama) mill from coal to natural
gas, and we reduced bunker C oil use
at both our Clermont and Saint-Félicien
(Quebec) mills.

Energy-efficient production places
Resolute ahead of potential regulations,
positioning the company as a leader
in GHG reductions and in the

development of new, sustainable
products that have a lower carbon
footprint.

We are constantly evaluating and
improving our manufacturing processes.
Reducing our overall carbon emissions
improves our cost structure and
competitive position. Examples include:

• A modification completed at our

Grenada (Mississippi) paper mill to
convert the thermo-mechanical pulp
(TMP) to inter-stage screening with
long-fiber refining. The technology
allows us to reduce electrical
energy consumption to manufacture
mechanical pulp at the facility.
This, in turn, contributes directly to
reducing our scope 2 GHG emissions.

• In collaboration with Natural

Resources Canada and FPInnovations,
a project using sophisticated analysis
techniques identified significant
energy-saving opportunities at our
Thunder Bay (Ontario) pulp and paper
mill. We are also optimizing the use of
fuel and steam at our Saint-Félicien
and Calhoun (Tennessee) facilities.

GREENHOUSE GAS EMISSIONS
OVER 2000 LEVELS
PULP AND PAPER MILLS, 2000-2014

CARBON FOOTPRINT
PULP AND PAPER MILLS, 2014

(millions mt CO2e)

(kg CO2e/mt)

1,000

900

800

700

600

500

400

300

200

100

● Scope 1:

Direct emissions from production

40%

● Scope 2:

Indirect emissions related to
purchased electricity and steam

60%

2000

2012

2013

2014

937
7.25
4.61

696
2.41
1.43

654
2.17
1.69

611
2.06
1.39

● Total intensity (direct + indirect)
■ Total absolute (indirect)
■ Total absolute (direct)

39. Scope 1 GHG emissions are greenhouse gas emissions that come from sources owned or controlled by the company, such as the combustion of fuel at mills to

generate heat to dry paper or generate electricity. Scope 2 GHG emissions are greenhouse gas emissions that are the result of company activities occurring at
sources owned or controlled by third parties, associated with the production of purchased electricity or steam. Scope 2 emissions physically occur at the facility
where electricity or steam is generated.

40. Does not include wood products. Renewable sources include hydroelectricity (owned and purchased) and biomass used to produce steam and cogeneration electricity.

41. Does not include wood products. Includes bark and biosolids from our water treatment plants, black liquor and landfill gas.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
47

• A $105-million investment at our
Calhoun pulp and paper mill will
produce efficiencies from better
wood yield and lower steam and
chemical usage, while increasing
pulp production capacity and
improving product quality.

The environmental impact of our
operations is not limited to direct
emissions. We are also beginning
to track GHG emissions related to
our supply chain. Known as scope 3
emissions, they too represent an
important aspect of our carbon
inventory. Over time, we intend to
develop strong relationships and
a collaborative approach with key
suppliers to further reduce our
global carbon footprint.

We are committed to implementing
scope 3 standard GHG accounting
and to begin the full reporting of
scope 3 GHG emissions in 2015.

The indirect greenhouse gas emissions
listed in scope 3 include all indirect
emissions not covered in scope 2,

such as emissions from the production
of purchased materials or transportation
activities not controlled by the company.

ENERGY SOURCES

The energy used in pulp and paper
production comes primarily from
steam and electrical power. Resolute
generates power from its seven
hydroelectric and seven cogeneration
facilities, and purchases electricity,
fuel and steam from external suppliers.
Cogeneration, which refers to the
simultaneous generation of electricity
and steam, allows us to extract more
energy from biomass. In 2014, our
installations generated more than
2,864 GWh of electricity, mostly from
renewable sources. This reduces our
need to purchase energy from outside
sources, which can be more GHG-
intensive. In 2014, our operations
associated with electricity-generating
installations42 collectively met
approximately 47% of their electrical
requirements using internal sources.

Together, all four of our operations with
cogeneration assets from which we sell
electricity externally reduced our costs
by approximately $43 million43.

In 2014, the amount of electricity we
purchased at our pulp and paper mills
totaled approximately 11,534 GWh.

Energy is also produced by the
combustion of fuel, and in 2014,
27,610 GWh of energy were produced.
As an integral part of our operational
strategy, we continued to focus on the
reduced use of carbon-intensive fuels.
In 2014, 77% of our fuel needs were
met using renewable fuel, namely
black liquor, wood residues and
biosolids from our treatment plants44.

We also make use of alternative energy
sources such as methane from landfills,
used oils, tire-derived fuel and waste
plastics, recovering their energy value
to reduce our consumption of fossil fuels.

Of all the energy used by our pulp
and paper making processes, 72%
came from renewable sources,
such as hydroelectricity and biomass.

FUEL USE FOR STEAM
PULP AND PAPER, 2014

ELECTRICITY USE
PULP AND PAPER, 2014

● Black liquor solids
● Bark and biosolids
● Natural gas
● Bunker C oil
● Purchased steam
● Landfill gas
● Tire-derived fuel
● Plastics
Coal

40
36
19.9
1.3
0.8
0.7
0.5
0.5
0.3

● Purchased – hydro
● Purchased – nuclear
● Self-generated cogeneration power
● Purchased – coal
● Purchased – natural gas
● Owned hydro power
● Purchased – other

%
46
14
12

10
8
8
2

Hydro-Saguenay hydroelectric operations

42. Alma (Quebec), Calhoun (Tennessee), Catawba (South Carolina), Coosa Pines (Alabama), Dolbeau (Quebec), Gatineau (Quebec), Kénogami (Quebec), Saint-Félicien

(Quebec) and Thunder Bay (Ontario) pulp and paper mills.

43. From the four cogeneration assets from which we sell electricity externally, not including other operational efficiencies realized with the operation

of the cogeneration facilities.

44. For all our operating sites that produce steam on-site.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT

MILL ENVIRONMENTAL
PERFORMANCE

Our manufacturing processes have
an environmental impact through the
consumption of resources, as well as
from air emissions, waste generation
and water discharge. We seek to
minimize these impacts and to go
beyond minimum legal requirements by
focusing on continuous improvement
and by establishing environmental
management systems (EMS) at all
our operating facilities.

ENVIRONMENTAL
MANAGEMENT SYSTEMS

Environmental performance is managed
at the local level, with oversight from
the highest levels of the organization.
Guided by our environmental policy,
mill environment coordinators are
responsible for ensuring compliance
with local laws and regulations, as well
as facilitating continuous improvement.

Our coordinators work closely with
corporate environment managers to
identify and manage the issues most
relevant to a specific operation. Each
facility identifies key performance
indicators (KPIs) and sets related target
reductions annually. This approach
respects the different geographic
and technological contexts of each
operation. KPIs are monitored at both
the mill and corporate levels.

All of our operating facilities and all of
our Canadian woodlands operations
are covered by an environmental
management system. Ten facilities
had their EMS ISO 14001-certified
in 2014, so that all but three are now
ISO 14001-certified45. The three
remaining facilities – the Menominee
(Michigan) pulp mill, the recently
restarted Ignace (Ontario) sawmill
and the Atikokan (Ontario) sawmill,
currently under construction – will seek
ISO 14001 certification in 2015.

Our operations also work to
continuously improve environmental
performance in key areas. Resolute
reports sustainability performance
in accordance with Global Reporting
Initiative (GRI) guidelines. Detailed
descriptions of the scope of the
reporting and data measurement
techniques on our climate, water
and waste management work will be
available in the sustainability section
of our website in summer 2015.
The four key areas in which we
monitor performance include:

• Air emissions
• Waste generation
• Water management
• Environmental incidents

AIR EMISSIONS

We manage air emissions using
generally accepted pollution control
technologies to minimize emissions
of contaminants such as sulfur
dioxide (SO2), nitrogen dioxide (NOX)
and total particulate matter (TPM)
concentrations. We have also adopted
broader measures such as switching
from coal and heavy oil (bunker C)
powered boilers to cleaner fuels such
as natural gas and biomass.

Resolute has made significant
investments to ensure we meet
and even exceed regulations.
More stringent emission limits will
be imposed in the United States
in 2016 with the implementation
of the U.S. Environmental Protection
Agency’s new Boiler Maximum
Achievable Control Technology (MACT)
rule. At the end of 2014, four of
our six U.S. mills that are subject to
this upcoming rule were already in
compliance. Work is underway at
the other two facilities to ensure
compliance by 2016.

Thunder Bay pulp and paper mill

Neil Patterson, contractor,
Thunder Bay pulp and paper mill

Thunder Bay pulp and paper mill

45. Does not include unconsolidated entities: Opitciwan and Produits Forestiers Petit-Paris (Quebec) sawmills.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
49

Resolute’s environmental compliance
and risk audits serve to complement our
incident management system. Through
these audits, areas for improvement
are identified and plans are developed
and implemented to reduce the risk
of environmental incidents. 2014
represented the second year of
our three-year risk audit cycle. At the
end of 2014, 73% of our pulp and paper
mills had completed both compliance
and risk audits, while 83% of our
sawmills and 100% of our Canadian
woodlands operations had completed
a compliance audit.

WASTE GENERATION

ENVIRONMENTAL INCIDENTS

We track environmental incidents at all
of our operations. In 2014, we reduced
mill environmental incidents by 19%,
surpassing our 10% reduction target
over 2013. The company recorded
52 environmental incidents in 2014
compared to 64 in 2013. We continue
to work towards our long-term goal
of zero incidents by setting an 8%
reduction target for 2015 compared
to the 2014 baseline.

Our incident management approach
includes: a comprehensive tracking
system to ensure efficient reporting;
full incident investigation with root
cause analysis; implementation of
permanent corrective measures; and
the sharing of key findings among our
operations to prevent recurrence.

Reducing the waste generated by
our activities is another key focus at
our pulp and paper mills. We address
waste by identifying beneficial-use
alternatives and developing process
efficiencies, such as making optimal use
of fiber to minimize the cost of effluent
treatment. Beneficial-use alternatives
include practices such as landspreading
and mine-site rehabilitation, further
reducing the amount of waste sent
to landfill.

WATER MANAGEMENT

Papermaking is a water-intensive
process. We reuse water as much
as possible and return 95% to the
environment. The remaining 5%
is captured in the end product or
evaporated during the manufacturing
process. All the water we use passes
through primary and secondary effluent
treatment prior to being returned to
the environment. We closely monitor
our performance and ensure continuous
improvement. Information on water
discharged is aggregated, analyzed
and reported to organizations like the
Carbon Disclosure Project (CDP).

WATER DISCHARGED
PULP AND PAPER MILLS, 2012-2014

● Intensity (m3 of water discharged/mt

of pulp or paper produced)
■ Absolute – water discharged

(millions of m3)

64.2

65.5

56.3

Thunder Bay sawmill

Water treatment plant, Kénogami

46. Does not include the three Fibrek mills acquired in 2012.

47. Calculated using extrapolated data for the Gatineau (Quebec) paper mill, which came online during the second half of 2013 to account for the start-up period.

2012
354

2013
386

2014
332

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTHUMAN
RESOURCES

Resolute’s long-term competitiveness
is tied to the ability to recruit, develop
and retain top-quality employees with
the right skills. We are committed to
implementing new human resource
practices to ensure employee retention
and workforce renewal. We are building
a strong company culture that attracts
results-driven and action-oriented
employees and allows natural leaders
to grow.

2014 highlights:

• Hired 1,089 new employees;

• Relied on our social media presence,

including The Resolute Blog, to
promote, for example, the professional
development of our graduate
engineers and others;

• Participated in career days and

other events hosted by colleges and
universities to sustain a recruiting
presence in all our operating
communities;

• Are on target to hire 4,250 new

employees over the 2014-2018 period;

• Launched an official employee referral

program;

• Hired 12 engineering graduates
through our internship program,
providing them with opportunities
to accelerate their professional
development toward leadership roles;

• Negotiated new collective agreements

for a significant portion of our
Canadian and U.S. operations; and

• Launched an integrated leadership

system designed to increase
organizational capability.

WORKFORCE
AND TURNOVER

As at December 31, 2014, we employed
approximately 7,70048 people, of whom
about 5,300 were represented by
bargaining units.

We experienced a turnover rate of
11.6%, half as a result of retirements.

RENEWAL AND RETENTION
STRATEGY

We believe that our employees are
an important success factor and that
our organization is bettered through
investing in the recruitment of new
talent and developing the competencies
of our people. Over the next few years,
many of our long-standing workers will
be taking a well-deserved retirement,
and we will need to attract skilled
candidates who are motivated and
eager to learn. To rise to this challenge,
we have built a workplace where
our employees can learn, grow and
contribute.

In 2013, Resolute partnered with Cégep
de Saint-Félicien (Quebec) to launch a
certificate program in pulp and paper
manufacturing. In 2014, 13 students
graduated from the program, which
also included two 120-hour internships
at a Resolute mill. A second group of
students will graduate this year.

In addition to participating in career
days, open house events at schools
and other community activities, we
ramped up our efforts to recruit skilled
employees in a more targeted way.
In 2014, we ran a regional advertising
campaign in Quebec’s Saguenay–Lac-
Saint-Jean region to increase Resolute’s
visibility as a provider of good jobs
for people who want to live and work
in the area.

We also sought to involve our current
employees in our recruitment efforts
by developing a referral program. The
Employee Referral Program is designed
to attract quality candidates, increase
our overall speed of recruitment, and
improve our hiring success rates.

LABOR RELATIONS

Constructive labor and management
relations are at the foundation of good
human resource management and, as
such, are very important to Resolute’s
business. Regular dialogue with union
leaders, local union representatives and
employees at all our operations ensures
that these key stakeholders are kept
informed and engaged.

In the United States, Resolute, the
United Steel Workers (USW), the
International Brotherhood of Electrical
Workers (IBEW) and the United Associ-
ation of Journeymen and Apprentices of
the Plumbing, Pipefitting and Sprinkler
Fitting Industry of the U.S. and Canada
(UA) renewed, prior to their expiration,
the collective agreements of our mills at
Catawba (South Carolina) and Calhoun
(Tennessee), which now expire in 2019.
At the same time, collective agreements
were renewed for our mills at Coosa
Pines (Alabama) and Augusta (Georgia),
which now expire in 2020. These four
mills represent 35% of our pulp and
paper production capacity.

48. Excluding the unconsolidated entities in which we have non-controlling interests.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT51

In Canada, an agreement in principle
was entered into between Unifor and
Resolute to renew the collective agree-
ments for a four-year period, which was
ratified by a strong majority of union
members in each mill covered by the
agreement. This agreement was rep-
licated with the United Association of
Plumbers and Steamfitters (UAPS),
the IBEW, the International Association
of Machinists and Aerospace
Workers (IAMAW) and the International
Union of Operating Engineers (IUOE).
Collectively, these agreements cover
eight pulp and paper mills in Canada,
accounting for over 37% of our pulp
and paper capacity.

We also entered into an agreement
with Unifor to renew the collective
agreements for periods of four to
six years, covering approximately
500 employees in four sawmills in
Canada. We reached as well a six-year
agreement with USW, representing
our hourly employees working at the
Ignace sawmill.

INTEGRATED
LEADERSHIP SYSTEM

ETHICS
AND INTEGRITY

In 2014, the company launched a
strategic organization initiative focused
on the implementation of an integrated
leadership system designed to increase
organizational capability.

The new leadership system is
designed to:

• Optimize the organization’s structure;
• Clarify each employee’s role

and accountabilities;

• Provide a robust approach to

evaluating employee demonstrated
effectiveness and potential;

• Improve leadership practices to

enhance each employee’s opportunity
to drive success individually and,
ultimately, for the company;

• Better link compensation to individual

performance; and

• Improve the succession-planning

process.

By focusing on providing the right tools
for individual success, the company
is better equipped to enhance share-
holder value, product quality for our
customers, and the health and safety
of our employees.

Resolute manages ethics and integrity
through a number of tools, including
the Code of Business Conduct, the
Ethics Reporting Policy and an indepen-
dent ethics reporting hotline/helpline.
Employees, officers and directors of
Resolute are required to report financial
or accounting irregularities as well as
other suspected wrongdoings, to raise
any other ethics or compliance concerns
or questions they may have, and to pro-
actively seek guidance on actions with
potential ethical implications. Resolute
uses a team of internal experts to look
into each reported potential violation.

All employees are being trained on the
requirements of the company’s Code
of Business Conduct and the Ethics
Reporting Policy. Additional training on
anti-bribery and corruption programs is
scheduled for 2015 for targeted groups
of employees.

Internal audits are conducted regularly
to ensure compliance with the proce-
dures adopted in accordance with the
Code of Business Conduct, and material
findings are reported to management
and the board of directors.

Daniel Vaillancourt, Saint-Thomas sawmill

Julia Conrad, Thunder Bay pulp and paper mill

Curtis Swindell, Jr., Calhoun pulp and paper mill

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTHEALTH
AND SAFETY

At Resolute, safety is a core value.
We diligently pursue our goal of
establishing a “total safety organization”,
with a long-term goal of zero incidents
and zero injuries at all our operations.
Structures and management systems
are in place to support and ensure the
safety of everyone at our sites.

2014 SAFETY
PERFORMANCE

2014 was Resolute’s best year ever
in terms of safety performance.
The company’s Occupational Safety and
Health Administration (OSHA) incident
rate was 0.83, below the target of
0.99 and in line with world-class safety
performance. This represented a 22%
reduction in total recordable injuries
compared to 2013. OSHA recordable
injuries have dropped from 145 in 2011
to 70 in 2014 – a reduction of more
than 50%. However, we reported
a 13% increase in lost-time incidents.

We will continue to work diligently
to reduce the severity of injuries.
Our 2014 company-wide severity rate,
which measures the actual impact
from injuries on the health of our
employees, was 33, a 21% increase
compared to 201349.

We also achieved an overall 3.8 near-
miss ratio per employee (29,063 near
misses reported), reflecting an increase
in employee awareness and reporting of
potential hazards or injuries. Employees
across our operations made a sustained
effort in 2014 to better identify hazards
and control exposure to risk before
undertaking their daily tasks.

Our 2015 target is to achieve an
OSHA incident rate of 0.95 or below
and a severity rate of 27 or below.
The 0.95 OSHA incident rate target is
established by reducing the world-class
OSHA rate of 1.0 by 5%.

SAFETY MANAGEMENT
SYSTEM

Our approach to injury prevention is
one that combines leadership from
the company with the individual
responsibility of our employees.
This approach is supported by a
safety management system (SMS) that
includes training and awareness, audits
and monitoring, as well as employee
engagement through the use of joint
health and safety committees at all our
operations. Our employees receive
specific training on safety policies
and procedures not only to ensure
compliance with these requirements,
but also to be certain that they clearly
understand the safety expectations
for performing their job tasks.

Our safety management system is
comprised of three pillars that drive
our everyday focus on health and safety
across our operations:

• One-on-one safety commitment

discussions that allow us to strengthen
our expectations of how our
employees will work safely;

• Hazard recognition that is performed

prior to undertaking any tasks,
allowing employees to evaluate and
control safety-related risks, which
reduces the potential for injury; and

• Near-miss reporting that engages

employees in our health and
safety processes and provides
site management teams with risk
recognition data that we use to
maintain the daily proactive mindset
that prevents injuries.

As safety is a priority at all levels of
the company, our board of directors
requires regular audits of each
operation to ensure compliance with
Resolute’s safety management system.
These audits are conducted every
three years.

OSHA RATE, 2007-2014 AND 2015 TARGET PER 100 EMPLOYEES

Number of injured employees

520

307

184

171

145

107

3.06

1.95

1.51

1.43

1.13

1.02

0.83

0.95

2007 2008 2009 2010

2011

2012

2013

2014 2015
Target

49. The severity rate is calculated by adding the number of workdays lost to the number of restricted workdays due to injury, multiplied by 200,000 hours worked,

divided by total number of hours worked.

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORT
53

Awards
Resolute’s safety performance and
initiatives continue to garner accolades:

• Last year we received a number of
awards from the CSST (Quebec’s
health and safety commission),
including a leadership award for
Daniel Roy, the former mill manager
of the La Doré and Saint-Félicien
(Quebec) sawmills, for his leadership
and vision in establishing an injury-
prevention culture by promoting
accountability and cooperation.

• Our teams at the Abitibi-LP

engineered wood joint-venture
facilities in Larouche and Saint-Prime
(Quebec) won top safety honors from
the Washington-based APA – The
Engineered Wood Association.

• Resolute also has an internal

program to recognize operations that
reach a significant number of hours
without a recordable injury.
The Board of Directors Safety Award is
accompanied by a charitable donation
to organizations of the facility’s choice.
Many operations were recognized for
significant achievements in 2014 and
a total of C$280,000 was awarded
to local causes. In January 2015, the
Baie-Comeau (Quebec) paper mill
reached 1 million hours without a
recordable injury, the first paper mill
to reach this significant milestone
in company history.

INNOVATIONS
AND AWARDS

Our proactive approach to safety has
given rise to a number of innovations
and contributed to industry recognition.

Cut-resistant gloves
From 2011 to 2013, we recorded an
average of 20 cuts per year, which
accounted for more than 15% of our
OSHA recordable injuries. With the
implementation of cutting tool policies
and the gate-to-gate use of cut-
resistant gloves at all our operations,
hand injuries from cut hazards have
dropped to only one incident in 2014.

Chemical protective suits
Our policy governing the use of
chemical protective suits has reduced
chemical splash injuries substantially
since 2012. The suits, however, can be
uncomfortably hot and can sometimes
lead to user heatstroke. Our Calhoun
(Tennessee) and Kénogami (Quebec)
mills worked with suppliers to design
more comfortable protective clothing
made of a breathable fabric that
prevents penetration by a variety of
chemicals. Beyond its positive impact at
our operations, other forest products
companies are adopting these suits as
their benefits in the industry become
more widely known.

Five years after initiating a “total safety culture”,
we can confidently say that Kénogami employees have
adopted a proactive mindset when it comes to their
and their coworkers’ health and well-being.

Wearing a protective chemical suit is often a routine,
yet cumbersome, part of working at the mill. Adopting a
proactive approach, the mill formed a multidisciplinary

taskforce with the mandate to design a safer, watertight, more comfortable
and breathable suit. A safety solution made for employees, by employees.
The suit was adapted to specific mill-related working requirements: easy to take on
and off while wearing boots, longer sleeves to ensure outstretched arms stay covered,
extra padding on the knees and elbows, and added pockets for pens and radios.
Also, listed on the front pocket of every suit are the chemicals against which
the suit effectively protects. A very important feature indeed.

– Paul Falardeau, Kénogami General Manager

Julie Lamontagne, Kénogami paper mill

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTCOMMUNITY
INVOLVEMENT

We strive to have a positive and
meaningful impact in our local and
regional communities, and support many
registered charitable organizations
each year. We have chosen two primary
pillars of sustainable development as
our priority areas for philanthropic
contributions: social (community health
and education) and environmental
(community projects and education).

One of our largest 2014 donations
(C$125,000) was made to support
organizations and events in the
Innu community of Mashteuiatsh in
Saguenay–Lac-Saint-Jean, Quebec,
including the 8th annual First Nations
Gathering and the Fondation de
l’héritage culturel autochtone, which
fosters the preservation of Aboriginal
cultural heritage in the community.

We are inspired by our employees
who volunteer in their communities,
participating in countless events
and initiatives in support of many
important causes.

SUPPORTING OUR
COMMUNITIES

In 2014, Resolute’s charitable
contributions were approximately
$1 million. Each facility has its respective
contributions budget, provided that
50% of the funded activities and
organizations fall within the company’s
strategic areas of funding. Last year,
donations made by the company
supported causes as diverse as
United Way/Centraide, First Nations
community activities and events, the
Canadian Cancer Society, the Red
Cross, Saguenay–Lac-Saint-Jean
hospitals, charities related to raising
awareness about domestic violence,
and a variety of other organizations
selected by employees.

Facilities can acquire additional funds to
contribute to community organizations
from our Board of Directors Safety
Award, a safety incentive program that
rewards operations that have worked
a significant number of hours without
a recordable injury. In 2014, these
awards were accompanied by a total of
C$280,000 in donations to charities
chosen by mill employees, such as
suicide prevention programs, Special
Olympics and local food banks.

We also recognize the importance of
education and sponsor scholarship
programs at various colleges and
universities. One example is our
five-year C$65,000 partnership with
the Saint-Félicien community college in
Quebec. Announced in November 2014,
it will offer five scholarships annually
and a paid internship to encourage
students to pursue careers in pulp
and paper manufacturing. In 2014,
we renewed our sponsorship of
Forces AVENIR, a Quebec program
that recognizes students who
are socially conscious, active and
responsible citizens.

EMPLOYEES WHO INSPIRE

We are proud of the important
contributions our employees make in
the communities where they live and
work. Sharing our time and resources
is part of being a good neighbor and
helps ensure we have a positive impact
on the lives of others.

Here are just a few examples of
community service provided by
Resolute employees in 2014:

• Catawba mill employees supported

literacy by being stewards of the free
libraries in Rock Hill, South Carolina,
as part of the “Rock Hill Reads”
initiative.

• In West Virginia, our Fairmont mill
team partnered with local schools
by purchasing all their waste paper,
recycling it and giving the proceeds
back to the schools.

• In Quebec’s Lac-Saint-Jean region,
100 Resolute employees provided
more than 300 rides during Operation
Red Nose, a volunteer-based driving
service that reduces impaired driving
over the holiday season and raises
funds for local youth organizations.

• A group of twenty Resolute

employees, retirees and contractors
from our Thunder Bay, Ontario,
operations organize sporting events
every year. Skiing, cycling, running
and triathlon activities are provided
through the following volunteer
organizations: Thunder Bay Timing,
Sleeping Giant Loppet, Thunder Bay
Cycling Club, Black Sheep Mountain
Bike Club and Big Thunder Ski Club.

John Lawson, Thunder Bay woodlands operations – Wabigoon (Ontario) tree nursery

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTRECOGNIZING THE CONTRIBUTIONS
OF OUR EMPLOYEES

The achievements, initiatives and
progress detailed in this 2014 annual
report are the result of the collective
effort of all our employees across the
organization. Their dedication, skill,
ingenuity and engagement are what
make Resolute a leading forest
products producer.

Particularly noteworthy is the company’s
progress in the area of workplace safety.
The year’s lowest-ever OSHA incident
rate of 0.83 reflects our employees’
focus on safety, which is a core value
linked to every part of our business.

Our employees also deserve credit
for three prestigious sustainability-
and innovation-focused recognitions
received by the company this past year:

• In June 2014, Resolute was named

to Corporate Knights’ Best 50
Corporate Citizens list, which
measures companies across twelve
key performance indicators using
publicly available data, covering the
management of resources, employees
and financials. Corporate Knights is
recognized globally for its transparent
and objective approach to measuring
corporate sustainability performance.

• In September, we were named to

Canada’s Clean50, recognizing leaders
who made the greatest contributions
to sustainable development and
clean capitalism in Canada.

• In December, we were honored with

• Our La Doré (Quebec) sawmill,

The New Economy’s global Clean Tech
award for best forestry and paper
solutions for 2014. These awards
recognize companies around the world
whose ideas, achievements, projects
and solutions reflect innovation,
long-term vision and leadership.

In addition to corporate recognition,
a number of our operations and their
respective employees were singled out
for prominent awards in 2014:

• The McMinn County Economic

Development Authority named our
Calhoun (Tennessee) mill APEX
(Adaptability, Performance and
Excellence) Innovator of the Year
for its continuous digester project
developed by mill personnel.
The digester is part of the mill’s
$105 million upgrade that will increase
pulp production capacity, while
significantly lowering overall costs
and improving product quality.

• Our Fairmont (West Virginia) team was
recognized with the Marion County
Chamber of Commerce President’s
Award for community support and
involvement. The pulp mill partners
with Harrison County schools by
purchasing and recycling their
waste paper.

jointly with the Centre de recherche
industrielle du Québec (CRIQ),
received a Technology Partnership
Award from the Association pour le
développement de la recherche et
de l’innovation du Québec (ADRIQ)
for developing a program of regular
upgrades and improvements to
existing equipment at the facility.
The work has resulted in 11 new
patents and three new systems that,
in less than a year, have generated
a return on investment.

• Our two Abitibi-LP joint-venture

engineered wood products facilities
at Larouche and Saint-Prime (Quebec)
were honored by APA–The Engineered
Wood Association with a prestigious
Safest Company Award for their
spotless safety record in 2013 and
their operational excellence.

Whether at the mill or corporate level,
these awards – and the accompanying
recognition – belong to our people.
They demonstrate that we work as
one team where safety, profitability
and sustainability drive our future.
I am proud of what was accomplished
this past year, and on behalf of the
senior management team and our
board of directors, I would like to
thank our employees.

Richard Garneau
President and Chief Executive Officer

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTBOARD OF DIRECTORS

CORPORATE OFFICERS

Richard Garneau
President and Chief Executive Officer

Pierre Laberge
Senior Vice President,
Human Resources

John Lafave
Senior Vice President,
Pulp and Paper Sales and Marketing

Yves Laflamme
Senior Vice President,
Wood Products, Procurement and
Information Technology

Jo-Ann Longworth
Senior Vice President and
Chief Financial Officer

André Piché
Senior Vice President,
Pulp and Paper Operations

Richard Tremblay
Senior Vice President,
Pulp and Paper Operations

Jacques P. Vachon
Senior Vice President,
Corporate Affairs and
Chief Legal Officer

Bradley P. Martin 2, 3
Chairman of the Board;
Vice President for Strategic
Investments,
Fairfax Financial Holdings Limited

Richard Garneau
President and Chief Executive Officer

Michel P. Desbiens 2, 3
Corporate Director

Jennifer C. Dolan 1, 4
Corporate Director

Richard D. Falconer 1, 2, 3
Corporate Director;
Senior Partner, Verus Partners & Co.

Jeffrey A. Hearn 2, 4
Corporate Director

Alain Rhéaume 1, 3
Lead Director;
Managing Partner, Trio Capital Inc.

Michael S. Rousseau 1, 4
Executive Vice President and
Chief Financial Officer, Air Canada

Ambassador David H. Wilkins 2, 4
Partner, Nelson Mullins
Riley & Scarborough LLP;
Former U.S. Ambassador to Canada

Board Committees
1 Audit Committee
2 Environmental, Health and Safety Committee
3 Finance Committee
4 Human Resources, Compensation and

Nominating and Governance Committee

RESOLUTE FOREST PRODUCTS — 2014 ANNUAL REPORTSHAREHOLDER INFORMATION

ANNUAL GENERAL MEETING

INVESTOR RELATIONS

FORM 10-K

Rémi G. Lalonde
Vice President and Treasurer
514 394-2345
ir@resolutefp.com

MEDIA

Seth Kursman
Vice President,
Corporate Communications,
Sustainability and Government Affairs
514 394-2398
seth.kursman@resolutefp.com

INVESTOR INFORMATION
AND FINANCIAL REPORTING

Investor inquiries should be directed to
Resolute’s Investor Relations department
at ir@resolutefp.com.

Vous trouverez la version française
de ce rapport sur pfresolu.com.

All figures reported in the document
are stated in U.S. dollars unless
otherwise stated.

Resolute Forest Products Inc. files its
annual report on Form 10-K with the U.S.
Securities and Exchange Commission,
a copy of which is included with this
Annual Report to Stockholders.
Free copies (without exhibits) are
available upon request to Resolute’s
Investor Relations department.
The company’s SEC filings, annual reports
to stockholders, news releases and other
investor information can be accessed at
resolutefp.com/investors.

STOCK LISTINGS

The shares of common stock of
Resolute Forest Products Inc. trade
under the stock symbol “RFP” on both
the New York Stock Exchange and
the Toronto Stock Exchange.

Resolute Forest Products
111 Duke Street, Suite 5000
Montréal, Quebec, H3C 2M1, Canada
514 875-2160 or 1 800 361-2888

For a full list of contacts, visit
resolutefp.com/contact.

Our annual meeting of stockholders
will be held on Friday, May 29, 2015,
at 10:00 a.m. (Eastern), in the Oglethorpe
Room at the Augusta Marriott at the
Convention Center, 2 Tenth Street,
in Augusta, Georgia, United States.

TRANSFER AGENT
FOR COMMON STOCK

Computershare Trust Company, N.A.
P.O. Box 30170, College Station,
Texas, 77842-3170, United States
866 820-6919 (toll-free within
the United States and Canada)
781 575-3100
computershare.com/investor

CO-TRANSFER AGENT – CANADA

Computershare Investor Services Inc.
100 University Avenue, 9th Floor
Toronto, Ontario, M5J 2Y1, Canada
800 564-6253 (toll-free within
the United States and Canada)
computershare.com/investor

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers LLP
1250 René-Lévesque Boulevard West
Suite 2800
Montréal, Quebec, H3B 2G4, Canada

Graphic Design / CG3 inc.

Printed in Canada

resolutefp.com

2014

ANNUAL

REPORT

BUILDING A

SUCCESSFUL

TOMORROW